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The DOJ is seeking to block implementation of any part of the Purdue Pharma bankruptcy deal until legal challenges are settled. The deal granted Sackler family members immunity from opioid lawsuits.
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Judge Robert Drain signaled he will approve the landmark bankruptcy for Purdue Pharma, the maker of OxyContin. But he called for new limits to legal protections for members of the Sackler family.
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In the Purdue Pharma bankruptcy trial now underway, scrutiny has focused on the Sacklers' demand for immunity from opioid lawsuits that would extend to a vast network of individuals and businesses.
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A bankruptcy judge cleared a plan for final vote by creditors of Purdue Pharma, maker of OxyContin, that would release the Sacklers and their financial empire from liability for the opioid crisis.
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Under a bankruptcy procedure prohibited by courts in part of the country, the Sacklers could be sheltered from opioid lawsuits even without declaring bankruptcy. Some states are crying foul.
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Under a bankruptcy plan filed late Monday, the OxyContin maker would pay $500 million up front, promising billions in future payments. Twenty-four states rejected the proposal.