Judge Orders Mediation Over Purdue Opioid Settlement

A U.S. judge on Monday ordered mediation in the Purdue Pharma bankruptcy, calling for the company, the Sackler family members that own it and nine states to determine whether they can reach a new opioid litigation settlement by Jan. 14.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York, issued an order directing the parties to negotiate changes to a previous deal rejected by another judge in December that provided the Sacklers protection against future opioid litigation. U.S. Bankruptcy Judge Shelley Chapman is serving as the mediator.

If they do not reach agreement by then, the mediation will end and an appeal by Purdue against the deal’s rejection will continue.

Chapman presided over prior mediation that led to the earlier settlement, under which the Sacklers said they would contribute $4.5 billion to Purdue’s reorganization plan, which directs money toward opioid abatement programs.