Purdue Judge to Approve Bankruptcy Plan Pending Minor Changes
(Bloomberg) -- U.S. Bankruptcy Judge Robert Drain said he’ll approve Purdue Pharma LP’s sweeping settlement of opioid-related civil claims on Wednesday, paving the way for the company and its owners, members of the Sackler family, to pay billions of dollars to benefit places hit hard by the epidemic.
Drain, who has overseen a multiweek trial over the deal, began delivering his ruling on Wednesday morning, and later in the day approved a portion of the settlement dealing with estate claims. He said more than six hours into his bench ruling that he would approve the bankruptcy plan pending minor changes discussed during the trial.
Key portions of the plan would see members of the billionaire Sackler family that own Purdue pay about $4.5 billion and walk away from the pharmaceutical industry.
In exchange, members of the family would receive immunity from civil liability over their alleged role in the opioid crisis. Drain has signaled comfort with the releases, which were dramatically narrowed during the course of the trial.
Critics of the plan have set the stage for an appeal.
The bankruptcy case is Purdue Pharma LP, 19-23649, U.S. Bankruptcy Court for the Southern District of New York (White Plains).
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