A New York federal court overturned a settlement that would have shielded members of the Sackler family who own the drugmaker from any future legal action related to the epidemic.
The company has been accused of fueling the crisis by aggressively marketing its drug.
Los Angeles Times.
The New York bankruptcy court that approved the settlement offer had the authority to grant legal immunity to members of the Sackler family in future cases.
Judge McMahon asked if the drugmaker's distribution of more than $10 billion to its billionaire owners was a larger abuse of the bankruptcy system.
The judge noted that half of the $10 billion was either invested in offshore companies owned by members of the Sackler family or deposited in trusts.
The federal judge's order was contrary to more than 30 years of governing precedent approving third party releases in appropriate circumstances, according to the statement.
The Attorney General praised the federal court decision in a statement. The Sackler family's right to file a lawsuit was not taken away by the bankruptcy court.
Steve Miller, Chairman of the company, said in the statement that the court's decision will delay and possibly end the ability of the community and individuals to receive billions in value to abate the opiate crisis. He said that they were confident that they could successfully appeal the decision.
