U.S. District Judge Colleen McMahon wrote in her decision that she cannot approve the settlement — part of Purdue Pharma’s restructuring plan that was approved by a bankruptcy judge in September — because it frees the Sackler family, the drugmakers’ founders and owners, from liability in future opioid-related cases.
The Sackler family made immunization from opioid claims a requirement in exchange for paying $4.5 from their personal wealth to the bankruptcy settlement, but Ms. McMahon said the bankruptcy code does not allow a judge to grant such immunity.