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Utah to resume legal action against former Purdue Pharma owner

In this Aug. 9, 2021, file photo, fake pill bottles with messages about OxyContin maker Purdue Pharma are displayed during a protest outside the courthouse where the bankruptcy of the company is taking place in White Plains, N.Y. A federal bankruptcy judge on Wednesday, Sept. 1, gave conditional approval to a sweeping, potentially $10 billion plan submitted by OxyContin maker Purdue Pharma to settle a mountain of lawsuits over its role in the opioid crisis that has killed a half-million Americans over the past two decades.
Seth Wenig
/
AP
In this Aug. 9, 2021, file photo, fake pill bottles with messages about OxyContin maker Purdue Pharma are displayed during a protest outside the courthouse where the bankruptcy of the company is taking place in White Plains, N.Y. A federal bankruptcy judge on Wednesday, Sept. 1, gave conditional approval to a sweeping, potentially $10 billion plan submitted by OxyContin maker Purdue Pharma to settle a mountain of lawsuits over its role in the opioid crisis that has killed a half-million Americans over the past two decades.

The Utah Division of Consumer Protection will resume its 2019 legal action against the former owner of Purdue Pharma, Richard Sackler.

Utah had paused its lawsuit against the drug-maker after supporting a settlement agreement reached that same year between the company and 28 other state attorneys generals over the devastation thousands suffered due to the opioid epidemic.

In a Sept. 11, 2019 story, the Salt Lake Tribune reported the terms settlement would include the dissolution of Purdue Pharma and the formation of a new company that would continue to sell its signature opioid, OxyContin, but directed the proceeds to a public beneficiary company that would pay the plaintiffs. Purdue Pharma filed for Chapter 11 bankruptcy in 2019.

In June, the U.S. Supreme Court rejected part of the multi-million dollar settlement plan because it would have protected the Sackler family from lawsuits.

The decision opened the door for Utah to resume its lawsuit.

Utah’s lawsuit contends Purdue Pharma and Sackler deceptively marketed OxyContin as less prone to abuse and addiction than other painkillers, contributing to the public health crisis.

The company and Sackler are also accused of providing $200,000 in gifts and payments to Utah prescribers between 2013 and 2017, employing 186 sales representatives in Utah, and making direct marketing visits to 5,000 prescribers in their medical offices.

The state’s case will only proceed against Sackler, as Purdue Pharma has filed for bankruptcy and entered into a settlement with Utah and other states.

Updated: September 20, 2024 at 10:51 AM MDT
This story has been updated to clarify that only Purdue Pharma filed for bankruptcy. Sackler did not.