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Federal judge throws out Purdue Pharma’s opioid settlement that protected Sackler family

Colleen McMahon of the U.S. District Court for the Southern District of New York overturned a sweeping settlement against Purdue Pharma over its role in the opioid crisis.

Purdue’s Oxycontin (oxycodone) is among the most widely used opioids.

In September, Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, New York, authorized a Chapter 11 bankruptcy settlement against the company. However, several states involved in the suit vowed to appeal the decision.

McMahon argued that the agreement should not have shielded the Sackler family that owned Purdue Pharma from civil liability for opioid-related lawsuits.

The Sacklers had sought immunity from opioid claims as part of the $4.5 billion agreement.

In a 2007 plea agreement with the U.S., Purdue Pharma acknowledged that it had marketed OxyContin inappropriately and submitted false claims to the federal government related to the drug.

McMahon’s ruling will likely mean that the…

Purdue Pharma boost settlement offer to $4.28 billion

Purdue Pharma has proposed paying an additional approximately $500 million in cash to settle hundreds of thousands of opioid lawsuits.

As part of a proposed bankruptcy settlement, the payments would be spaced out over the next decade. The Sackler family that owns the company has earlier agreed to pay an additional $4.2 billion to settle a range of civil claims. The total settlement amount is roughly $4.28 billion.

The latest proposal has immediately faced opposition from two dozen state attorneys general.

The proposal, which would also strip the Sackler family of ownership of Purdue Pharma, would need approval from a federal bankruptcy court in White Plains, N.Y.

But the agreement would allow the family to continue managing offshore subsidiaries for at least seven years.

Purdue family admitted in 2007 and 2020 that it illegally marked opioids such as OxyContin in plea deals with the Justice Department.

The latest proposal would turn …

McKinsey to pay $573M in opioid settlement

The prestigious consulting firm McKinsey has struck a deal with 47 states over its role in the opioid crisis.

Notably, the company had advised OxyContin manufacturer Purdue Pharma (Stamford, Conn.) on “turbocharging” opioid sales. The pharma company had worked with McKinsey for 15 years.

The Justice Department concluded that McKinsey helped manage a Purdue Pharma sales program known as “Evolve to Excellence” that pushed medically questionable OxyContin prescriptions.

There is no admission of wrongdoing in the McKinsey settlement, but the firm will publicly share tens of thousands of pages of documents linked to its opioid work.

“With this agreement, we hope to be part of the solution to the opioid crisis in the U.S.,” said Kevin Sneader, global managing partner of McKinsey, in prepared remarks.

Sneader also apologized for the firm’s role in the opioid crisis while also maintaining that the firm’s past work with opioid makers was lawful.…