A federal judge in New York has ruled out a multi-billion dollar settlement in the bankruptcy of drug manufacturer Purdue Pharma. The judge calls it illegal that the Sackler family, who owned the company, can no longer be held personally liable as a result of the settlement.
Purdue Pharma used aggressive marketing to sell the heavy painkiller OxyContin, while ignoring the risks of addiction. The company thus became the driving force behind a slumbering drug epidemic that killed 500,000 people.
Purdue declared bankruptcy after hundreds of lawsuits were filed against the company. The billion-dollar settlement made it possible to use the profits that are still made with the drug to help victims. The Sackler family would also contribute 4 billion, provided that that would be the end of the line for them.
Criticism
While many victims and local authorities agreed with the plan, there was also criticism that the Sacklers should not be held accountable for their policies or feared for the fortune they had made from the painkiller.
“This ruling reopens the malpractice settlement and forces the Sackler family to face the pain and devastation they have caused,” said a Connecticut spokesperson for the state, who vehemently opposed the deal.
A Purdue spokesperson says that the judgment means that victims will have to wait longer for support. The company plans to appeal. It is not yet known when a final decision will be made.
Loss of prestige
The Sackler family has not yet commented on the cancellation of the settlement. Due to the fight against the company, the family has lost a lot of prestige: last week the Metropolitan Museum of Art announced that the family name would disappear from a building. That honor was bestowed upon the Sacklers when the family donated millions to the museum in New York in the 1970s.
Other museums have also distanced themselves from the Sacklers, such as the Guggenheim in New York, the Louvre in Paris and the Tate Gallery in London.
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