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Judge Tosses Purdue Pharma Settlement Over Sackler Family Protections

The ruling is likely to be appealed by both Purdue and government agencies in favor of it.

A judge in New York has rejected a proposed bankruptcy agreement between Purdue Pharma, the maker of the opioid Oxycontin, and myriad government agencies over provisions that would shield the Sackler family from future litigation. The settlement, which would put thousands of suits against the company to rest, has been years in the making but has encountered opposition from the U.S. Bankruptcy Trustee’s office and several state attorneys general in recent months due to the protections the family would receive. Under its current terms, the Sackler family will pay $4.5 billion, relinquish ownership of the company, and turn it into a charitable organization fighting addiction. The ruling is likely to be appealed by both Purdue and government agencies in favor of it.