Sacklers may pull settlement deal if outstanding lawsuits aren't blocked, lawyers say

The Sackler family may withdraw its settlement deal if a bankruptcy judge doesn't block outstanding state lawsuits against it and Purdue Pharma according to The New York Times

Under the agreement, the Sackler family pledged to pay $3 billion over seven years and an additional contribution with the money they'll receive from the sale of their British drug company, Mundipharma.

Lawyers for Purdue Pharma filed a complaint in bankruptcy court Sept. 18 aimed at the roughly two dozen states that have not yet signed onto the tentative agreement and are still pursuing lawsuits against the family and its company.

The complaint asks Bankruptcy Judge Robert Drain to block the states' lawsuits for 270 days while Purdue Pharma works out its bankruptcy plan, which is more than double the amount of time a company usually has to determine its plan, according to The New York Times.

Purdue Pharma's lawyers argue blocking the states' lawsuits is in the public interest because if the company has to continue paying legal fees, it may not have enough money to pay the amount promised in the settlement agreement.

Read the full report here.

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