Breaking Legal News & Current Law Headlines | Daily Legal Briefing
  • Home
  • Hot Topics
  • Breaking
  • Business
  • Big Law
  • Small Law
  • Law School
  • Legal Tech
No Result
View All Result
No Result
View All Result
Breaking Legal News & Current Law Headlines | Daily Legal Briefing
No Result
View All Result
Home Breaking

Sackler family says billions collected from Purdue not abuse of bankruptcy law

Daily Legal Briefing by Daily Legal Briefing
December 6, 2021
in Breaking
0
Sackler family says billions collected from Purdue not abuse of bankruptcy law
4
SHARES
32
VIEWS
Share on FacebookShare on Twitter


Dec 6 (Reuters) – Members of the Sackler family on Monday said billions of dollars they collected from Purdue Pharma before the company filed for Chapter 11 was the result of extra cash, not part of a “secret plan” to abuse the bankruptcy system.

In court papers, lawyers for the Sackler family members, who controlled Purdue, rejected U.S. District Judge Colleen McMahon’s suggestion that the more than $10 billion Purdue paid out in the years leading up to the 2019 bankruptcy could amount to an abuse of the Chapter 11 process. Around half of the money went to taxes or business investments, according to court documents.

The Sacklers are alleged to have drained Purdue of cash over several years. When it eventually filed for bankruptcy in the face of lawsuits over the epidemic, the company needed Sacklers’ money to settle the billions of dollars of legal claims. In return, the Sacklers were able to demand protection from the lawsuits.

Register now for FREE unlimited access to reuters.com

The Sacklers rejected the notion that there was any “scheme” to “deliberately weaken Purdue so it could not reorganize without” their financial contribution.

There is no evidence to suggest the payments “were made as part of a secret plan” to abuse the bankruptcy system, the Sackler lawyers said. They called the idea “pure fiction.”

McMahon is considering whether to overturn a bankruptcy court ruling that shields the Sacklers from liability over the opioid epidemic. If she finds that there is sufficient evidence of abuse, she could send the matter back to the bankruptcy court to reconsider the shield.

More than 500,000 people have died from opioid overdoses since 1999, according to the Centers for Disease Control and Prevention.

The payments, the Sacklers argued, were made as business grew, including increased revenue following the restoration of Purdue’s patent for OxyContin in 2008.

The Sacklers, who have denied wrongdoing and did not file for bankruptcy themselves, have contributed about $4.5 billion to a settlement of opioid-related litigation in exchange for protection against future lawsuits.

Purdue argued in a separate filing on Monday that the protections are necessary because the company cannot exit bankruptcy without resolving opioid-related claims against both Purdue and the Sacklers.

The U.S. Department of Justice’s bankruptcy watchdog, the U.S. Trustee, has long opposed this type of litigation shield and said on Monday in court filings that the law offers no such protections for people who have not filed for bankruptcy.

The U.S. Trustee accused the Sacklers of “piggybacking” off Purdue’s bankruptcy to protect themselves.

“If this is not abuse of the bankruptcy system, it is unclear what is,” the trustee said.

Register now for FREE unlimited access to reuters.com

Reporting by Maria Chutchian; Editing by Noeleen Walder, Bernadette Baum and Mark Porter

Our Standards: The Thomson Reuters Trust Principles.



Click to Read Original Article

Previous Post

Another Biglaw Heavy Hitter Announces Bonuses – Both Year-End And Special Bonuses!!!

Next Post

Beloved Law School Professor Making Jeopardy Debut Tonight

Daily Legal Briefing

Daily Legal Briefing

Related Posts

More U.S. colleges turn to law schools to find their next president
Breaking

More U.S. colleges turn to law schools to find their next president

by Daily Legal Briefing
December 8, 2021
NLRB considering overhaul of test for approving smaller unions
Breaking

NLRB considering overhaul of test for approving smaller unions

by Daily Legal Briefing
December 8, 2021
Cravath plays bonus catch-up as larger law firm payouts spread
Breaking

Cravath plays bonus catch-up as larger law firm payouts spread

by Daily Legal Briefing
December 8, 2021
Mass tort TV ads in serious slump as pandemic drags on
Breaking

Mass tort TV ads in serious slump as pandemic drags on

by Daily Legal Briefing
December 8, 2021
Prosecutors call ex-boyfriend of Ghislaine Maxwell accuser to testify at trial
Breaking

Prosecutors call ex-boyfriend of Ghislaine Maxwell accuser to testify at trial

by Daily Legal Briefing
December 8, 2021
Next Post
Beloved Law School Professor Making Jeopardy Debut Tonight

Beloved Law School Professor Making Jeopardy Debut Tonight

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Premium Content

Are Stealth Layoffs Ahead? Firms Are Threatening To ‘Rightsize’

Are Stealth Layoffs Ahead? Firms Are Threatening To ‘Rightsize’

August 30, 2022
11 Common Reasons Businesses Get Sued

11 Common Reasons Businesses Get Sued

August 16, 2022
A Humorous Introduction to 2AS

A Humorous Introduction to 2AS

December 15, 2022

Browse by Category

  • Big Law
  • Breaking
  • Business
  • Hot Topics
  • Law School
  • Legal Tech
  • Small Law

About US

Breaking Legal News & Current Law Headlines | Daily Legal Briefing.
Online coverage of breaking legal news and current law headlines from around the US. Top stories, videos, insight, and in-depth analysis.

Categories

  • Big Law
  • Breaking
  • Business
  • Hot Topics
  • Law School
  • Legal Tech
  • Small Law

Recent Updates

  • The Biglaw Firm With The Largest Decline In Gross Revenue
  • Google Business Profile Posts: A How-To For Small Law Firms
  • Weird How Quiet The ‘Campus Free Speech Crisis’ Crowd Has Been About CUNY Law School

© 2021 Daily Legal Briefing | Breaking Legal News & Current Law Headlines

No Result
View All Result
  • Contact Us
  • Home

© 2021 Daily Legal Briefing | Breaking Legal News & Current Law Headlines

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?