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A federal court judge has reversed the hotly contested Purdue Pharma bankruptcy plan after deciding a bankruptcy judge did not have authority to grant immunity to the Sackler family members who control the controversial drug maker. A provision in the plan grants immunity to some of the Sacklers as well as hundreds of their associates from future lawsuits, even though — unlike Purdue — they did not file for bankruptcy protection. The Sackler family members had insisted that a bankruptcy deal would not be possible, though, unless they were released from all future liability related to the harm caused by Purdue’s OxyContin painkiller. (Silverman, 12/16)

In her ruling, U.S. District Judge Colleen McMahon said the bankruptcy court lacked authority to grant the kind of releases at issue. So-called third party releases have divided federal courts across the country for decades, she said, adding that her ruling won’t be the last word on the subject. “This issue has hovered over bankruptcy law for thirty-five years,” McMahon said in her written ruling. “It must be put to rest sometime; at least in this Circuit, it should be put to rest now.” (Hill, 12/16)

In a statement Thursday night, the company said that it would appeal the ruling and at the same time try to forge another plan that its creditors will agree to. Purdue said the ruling will not hurt the company’s operations, but it will make it harder for company and Sackler money to be used to fight the opioid crisis as the legal fight continues. “It will delay, and perhaps end, the ability of creditors, communities, and individuals to receive billions in value to abate the opioid crisis,” said Steve Miller, chairman of the Purdue board of directors. (Mulvihill, 12/17)

Attorney General Merrick Garland said the Justice Department was pleased with Thursday’s ruling, saying in a statement that “the bankruptcy court did not have the authority to deprive victims of the opioid crisis of their right to sue the Sackler family. ”Representatives of the two branches of the family who own the company did not immediately respond to a request for comment. The third branch, descendants of Arthur Sackler, was not involved in the litigation — he sold his shares of the company before OxyContin’s introduction. (Kornfield, 12/16)

When opioid addiction began to ravage Suzanne and Jesus Valle's Ohio community more than two decades ago, the husband and wife saw another crisis unfolding. In Blue Creek, Ohio, one of the hardest hit areas in the country's opioid epidemic, children whose parents had become addicted to pain pills, heroin and other opioids were becoming the invisible casualties of the crisis. So, the Valles stepped in to help. From 2007 to 2018, they had taken in six children, all from Ohio families struggling with addiction, including their own. (Corona, Esty-Kendall and Bowman, 12/17)

Zachary Didier took what looked like a prescription pain pill just after Christmas last year, according to his parents. It contained an illicit form of the powerful opioid fentanyl, which they say killed the 17-year-old Californian. His death was one of a record 100,000 fatal overdoses in a year-long period through April that have demonstrated how the nation’s illegal drug supply is becoming more toxic and dangerous. A bootleg version of fentanyl being made mainly by Mexican drug cartels is spreading to more corners of the U.S., increasingly inside fake pills taken by people who in some cases believe they are consuming less-potent drugs. (Kamp and Wernau, 12/16)