AG Donovan seeks set aside of bankruptcy court order granting Sacklers Liability Shield

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Contact: Charity R. Clark, Chief of Staff, 802-828-3171

Attorney General TJ Donovan today announced that Vermont has filed a case to quash Purdue’s bankruptcy order granting unprecedented legal immunity to the Sackler family. The brief, submitted by a coalition of five states, came at the request of the U.S. District Court and argues the court should consider the Sacklers’ $ 11 billion extraction of Purdue in the years leading up to its bankruptcy for Determine if the Sacklers The Non-Consensual Liability Release is abusing the bankruptcy process.

“The evidence here shows that the Sacklers had a calculated long-term strategy to use a Purdue bankruptcy as a haven for their own misdeeds, to protect their vast opioid wealth from their many victims. Starting in 2007, as they realized the extent of their personal responsibility for lying about the dangers of Oxycontin, they began to consult with bankruptcy experts on how to protect their assets. They then extracted billions of dollars from the company and moved it overseas, following the advice they received from people involved in asbestos-related bankruptcies …[T]Sackler’s non-consensual release cannot be approved because it abuses the bankruptcy process, ”argues the coalition in its brief.

From 2008 to 2010, the Sacklers received annual distributions of approximately seventy percent of Purdue’s revenue, and from 2011 to 2016, they took annual distributions ranging from forty to fifty-five percent. Distributions totaled over $ 10.7 billion during the period 2008 to 2018.

Attorney General Donovan, along with Attorneys General in California, Connecticut, Delaware, District of Columbia, Maryland, Oregon, Rhode Island and Washington, appealed the controversial and unprecedented decision of the bankruptcy court which seeks to extinguish claims against Purdue and the non-bankrupt Sackler family. Purdue’s bankruptcy plan is forcing the Sackler family to pay $ 4.3 billion – though it’s worth several times that amount – over nine years to help reduce the opioid crisis they fueled. By the time they finish paying that settlement, the Sacklers will be richer than they were when they started.

Attorney General Donovan was joined in the brief by Attorneys General for Connecticut, Delaware, Rhode Island and Washington.

A copy of the brief is available here.

Last modification: December 7, 2021


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