Judge rejects opioid settlement over legal protections for Sackler family

The ruling on Thursday from Judge Colleen McMahon in New York is likely to be appealed by the company, family members and the thousands of government entities that support the plan.

Purdue sought bankruptcy protection in 2019 as it faced thousands of lawsuits claiming the company pushed doctors to prescribe OxyContin, helping spark an opioid crisis that has been linked to more than 500,000 deaths in the US over the last two decades.

The deal also calls for millions of company documents, including communications with lawyers, to be made public.

Most state and local governments, Indigenous tribes, individual opioid victims and others who voted said the plan worked out in the bankruptcy court should be accepted.

Some wanted to see those family members prevented from being shielded from further civil liability and also hoped some Sacklers would end up in prison, the likelihood of which faded when Purdue Pharma pleaded guilty to three criminal charges last year and paid $8bn in fines and damages.

The Purdue deal would not protect family members from any criminal charges. But so far none have been filed.