NPR: “A division of the Justice Department that serves as a watchdog over the federal bankruptcy system filed an appeal late Wednesday seeking to block the controversial Purdue Pharma bankruptcy plan. William Harrington, who serves as U.S. Trustee for the Justice Department, also filed documents requesting an ‘expedited stay’ to prevent implementation of the settlement.”
“The deal, approved Sept. 1 by Judge Robert Drain, granted sweeping immunity from opioid lawsuits to members of the Sackler family who own the drug company. The Sacklers, who are not bankrupt, were granted releases from liability after agreeing to contribute roughly $4.3 billion of their private wealth to the deal. Supporters of the settlement, including most state attorneys general, say it will avoid costly litigation while funding drug treatment programs over the next decade. But throughout a two-week bankruptcy trial, and in court documents, the DOJ repeatedly blasted releases from liability granted to the Sacklers as ‘unlawful’ and ‘unconstitutional.’ In an earlier filing, Harrington accused the Sacklers and their associates of using the bankruptcy system to avoid liability for ‘alleged wrongdoing in concocting and perpetuating for profit one of the most severe public health crises ever experienced in the United States.’ Introduction of Oxcontin in the 1990s is widely seen as one of the spurs of an opioid epidemic which has killed more than 500,000 people in the U.S. The Sacklers, who by their own reckoning earned more than $10 billion from opioid sales, have said repeatedly they did nothing wrong and acted ethically.”