Attorney General Tong opposes Purdue bankruptcy plan
Attorney General Tong opposes Purdue bankruptcy plan with legal shield for Sackler family
States argue bankruptcy court lacks the power to stop attorneys general from suing Sackler family
(Hartford, CT) – Attorney General William Tong today joined eight other Attorneys General in filing formal objections to an inadequate and insufficient Purdue bankruptcy plan that would grant the Sackler family a lifelong legal shield. Attorney General Tong and the States argue that a bankruptcy court lacks the power to prevent attorneys general from applying state law, including prosecuting the Sacklers for their unlawful conduct in the conduct of the opioid epidemic.
“Connecticut won’t sit on the sidelines while the Sacklers plunder their own charitable funds and walk away with their personal wealth intact. This plan represents an unprecedented legal maneuver in an attempt to force states to abandon our strong demands against the Sacklers. This plan is far from justice, and we will not give up our fight for justice and accountability ”, said Attorney General Tong.
Besides Connecticut, Washington, California, Delaware, Maryland, Oregon, Rhode Island, Vermont and the District of Columbia have also filed or joined formal objections today. Click here for the Connecticut filing.
Purdue’s proposed bankruptcy plan would require the Sackler family to pay $ 4.3 billion over nine years to the group of states, municipalities and private plaintiffs that sued the company in 2017. The state objections, filed today ‘ hui in U.S. Bankruptcy Court for the Southern District of New York, in connection with Purdue’s bankruptcy proceeding, says $ 4.3 billion is tiny in context: The Sackler family made at least $ 11 billion dollars in profits by producing and deceptively marketing OxyContin, a major driver of the rising opioid crisis and, most importantly, the Sacker Family is not bankrupt or even bankrupt. The crisis has cost the nation millions of lives and over $ 2,000 billion in damage.
As noted in a recently published New York Times editorial, the Sacklers will continue to earn interest on their $ 4.3 billion, with the settlement paid over nine years. By the time they finish paying this settlement, the Sacklers will be richer than they were when they started.
Additionally, Purdue’s bankruptcy plan would release the Sacklers for life from liability, which would mean states would be permanently banned from pursuing consumer protection lawsuits against the Sacklers. The objection asserts that a bankruptcy court judge does not have the power to take away from a state attorney general the power to enforce consumer protection laws.
State objections argue that the Sacklers should not receive a federal injunction protecting the lion’s share of their multibillion-dollar fortune in return for payments covering less than one percent of the damage they caused.
The bankruptcy hearing is scheduled to begin August 9. The judge will decide whether or not to approve the plan soon after.