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By The Vanguard
OAKLAND, CA – A U.S. Supreme Court decision this week to temporarily block OxyContin maker Purdue Pharma’s bankruptcy reorganization plan from moving forward while SCOTUS reviews its fairness and legality was applauded by California Attorney General Rob Bonta Friday.
The AG also announced Friday the arrest of a doctor for illegally prescribing opioids.
Purdue Pharma, the manufacturer of OxyContin, a powerful prescription opioid and key contributor to the opioid crisis, had a $6 billion bankruptcy reorganization plan that awarded nonconsensual third-party releases to, as Bonta puts it, “unfairly” shield members of the Sackler family, the owners of Purdue Pharma, from all private civil lawsuits by individuals harmed by the Sacklers’ misconduct.
The Sacklers’ shenanigans have been portrayed in several past and current television productions, including the award-winning “Dopesick.”
“This ruling is an important development for the countless victims whose lives have been ripped apart by the opioid crisis. We are pleased that by temporarily blocking Purdue’s bankruptcy plan, the Supreme Court will review the fairness and legality of the plan’s nonconsensual liability shield for the Sackler family,” said Attorney General Bonta.
Bonta added, “Those who wish to seek justice against the ringleaders of the crisis – the Sackler family – should not be blocked by a bankruptcy plan that they never agreed to. The Sacklers fueled and profited from a crisis that caused immense pain and suffering in our communities – the bankruptcy process is not a tool for corporations to shield their billionaire owners from private liability for their personal misconduct.”
AG Bonta, according to his office, has “previously voiced strong concerns about the Purdue bankruptcy plan, and urged the United States Court of Appeals for the Second Circuit to strike down the nonconsensual Sackler releases.
The AG statement Friday noted, “While the Supreme Court decision puts on hold the $6 billion settlement agreement between Purdue Pharma and a number of states, including California, Attorney General Bonta hopes for a path forward that would bring much-needed resources to impacted communities while ensuring that those who wish to seek justice against the Sackler family are allowed to do so.”
In the announced arrest of and filing of charges against Dr. Arash Padidar, a Santa Clara County doctor accused of illegally prescribing opioids to patients, the AG said the case is the result of a two-years-long illegal prescription scheme by the California Department of Justice (DOJ). Padidar was arrested Friday by DOJ agents and booked into the Santa Clara County Jail.
“Doctors are trusted with the immense responsibility of protecting our health and our lives,” said Attorney General Bonta. “When a bad actor exploits their position for personal gain, they not only shatter our trust, they harm vulnerable patients…the California Department of Justice will not tolerate abuses of power and will hold perpetrators accountable.”
“This investigation focused on a trusted member of the medical community who allegedly utilized forgery and fraud to obtain highly addictive opioids for his own personal benefit,” said Drug Enforcement Administration (DEA) Special Agent in Charge Brian M. Clark.
Clark added, “Healthcare professionals have a duty to prescribe controlled substances in a manner that ensures the well-being of the public. DEA will continue to keep communities safe and healthy by holding those accountable who put them in harm’s way. I want to thank CA DOJ Division of Medi-Cal Fraud and Elder Abuse and DEA Diversion for their exceptional work in this investigation.”
DOJ investigators said they “found that Padidar’s illegal prescription scheme was carried out between October 2018 and October 2020 and involved the highly addictive pain medication Norco. He is facing charges on seven felony counts, including for obtaining opioids by fraud, deceit and misrepresentation, issuing prescriptions without a legitimate medical purpose, forging and issuing a prescription, unlawful use of personal information and conspiracy to commit a crime.”
