Justice Department presses to curtail Purdue Pharma bankruptcy probe

Lawyers with the Justice Department have petitioned a bankruptcy judge not to force Purdue Pharma to relinquish certain documents as part of its Chapter 11 bankruptcy, even though those same disclosures informed the government's criminal investigation against the drugmaker.

Lawyers with the Justice Department have petitioned a bankruptcy judge not to force Purdue Pharma to relinquish certain documents as part of its Chapter 11 bankruptcy, even though those same disclosures informed the government's criminal investigation against the drugmaker. A creditors committee working with the bankruptcy court is scrutinizing the drug manufacturer, the Sackler family that owns it, and the company's role in the country's opioid crisis. The Justice Department argues that Purdue and the Sackler family should not have to make similar disclosures as part of the bankruptcy proceedings, lest other targets of government probes balk at "full and frank discussions" with prosecutors out of fear the information could be used against them in civil litigation. Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, NY, will decide how deep the creditors committee can dig as it looks into questions such as whether Purdue profits were used to bankroll other Sackler businesses. Meanwhile, the government's investigations into Purdue are coming to a close, with a settlement potentially being announced this week.