Fate of opioid litigation hinges on government 'police power' [Reuters (UK)]
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Source: Reuters
Fate of opioid litigation hinges on government 'police power' - Reuters 7 Min Read NEW YORK/BOSTON (Reuters) - The fate of thousands of lawsuits seeking to hold drugmakers responsible for fuelling the U.S. opioid epidemic hinges in part on a thorny legal question: Can a company can use a bankruptcy to stop lawsuits from cities and states? U.S. Bankruptcy Judge Kevin Gross is expected in July to decide whether to halt more than 160 active lawsuits brought by state attorneys general, cities and counties against opioid manufacturer Insys Therapeutics Inc. When it filed for Chapter 11 protection in Delaware earlier this month, Insys requested the cases be paused. A bankruptcy filing would normally halt active litigation immediately, giving a company such as Insys time to reorganize and preserve money that would otherwise be spent fighting the cases. But a longstanding exception in U.S. bankruptcy law can keep the lawsuits alive if they are enforcing government officials’ “police or regula
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