Purdue Pharma secured an 18-day extension on Thursday to continue its efforts to reach a settlement in lawsuits related to its role in the opioid addiction crisis.
Bankruptcy Judge Sean Lane approved this extension during a hearing in White Plains, New York, allowing the company more time to negotiate a comprehensive settlement.
The extension comes after the U.S. Supreme Court, in June, blocked Purdue’s previous bankruptcy settlement, which had shielded members of the Sackler family from lawsuits despite them not filing for bankruptcy themselves.
The Court ruled that bankruptcy courts cannot protect non-debtors, like the Sacklers, from legal claims without consent from potential plaintiffs.
Purdue’s lawyer, Marshall Huebner, said the company intends to preserve as much of the original settlement as possible.
Most state attorneys general, local governments, and a court-appointed creditors’ committee supported the extension, although some governments, like Maryland and Nassau County, opposed it, calling it a “slippery slope” due to concerns that Purdue may continue requesting more time.
Despite these objections, Judge Lane pointed out that silence during negotiations is normal and emphasized that settlements aren’t promised until they’re finalized.
Purdue initially filed for Chapter 11 bankruptcy in 2019 to address debts from thousands of lawsuits accusing it of fueling the opioid epidemic through deceptive marketing of OxyContin.
The Sackler family has denied wrongdoing but acknowledged that OxyContin played a role in the crisis.
The ongoing case, In re Purdue Pharma L.P., continues to be heard in the U.S. Bankruptcy Court for the Southern District of New York.
