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 judge on Wednesday, Oct. 13 allowed Purdue Pharma to resume its work carrying out the recent $10 billion settlement plan that allowed the Oxycontin maker to emerge from bankruptcy. (AP Photo/Seth Wenig, File)
A federal judge on Wednesday allowed Purdue Pharma to resume its work carrying out the recent $10 billion settlement plan that allowed the Oxycontin maker to emerge from bankruptcy.
The decision from U.S. District Court Judge Colleen McMahon denied a request from an arm of the U.S. Department of Justice to keep Purdue's work on hold pending an appeal of the settlement. McMahon partially reversed a position she took over the weekend when she temporarily halted the company's efforts at the request of the U.S. Bankruptcy Trustee.
Before Purdue can resume, the judge said she needs to extract a promise from the company and the other entities that agreed to the settlement. They would pledge not to undermine the appeal in the future by claiming the settlement process had progressed too far to stop.
Lawyers for Purdue said in court this week that the company and other parties who supported the settlement — a group that includes Sackler family members and most states — are willing to sign such a pledge. Lawyers said they want to be ready to get money quickly to governments and victims of the opioid crisis if the settlement stands.
Last month, a bankruptcy judge in White Plains, New York, approved Purdue's plan to settle 3,000 lawsuits and more than 100,000 other claims for damages the company faced related to the toll of the opioids crisis. Prescription and illicit opioids have been linked to more than 500,000 deaths in the U.S. over the last two decades.
The bankruptcy settlement calls for turning Purdue into a new entity with its profits being used to fight the epidemic. It also calls for members of the Sackler family to contribute $4.5 billion in cash and charitable assets, and to give up ownership of Purdue.
A provision that is a driving force behind the appeal gives the Sacklers protection from civil lawsuits related to opioids. In a hearing Tuesday in her New York courtroom, McMahon said she intended to cast aside other legal arguments.
“That’s the big dog here," she said. “That presents a pure question of law.”
The appeal in federal district court is just one part of a complicated legal case.
U.S. Bankruptcy Judge Robert Drain, who approved Purdue's settlement, has scheduled a hearing for next month that also hinges on the question of whether the plan should be put on hold. He's also being asked to send the case to U.S. Circuit Court, a move that would bypass McMahon's court. But the appeals judges would have to agree to take it.
The U.S. Bankruptcy Trustee's office did not comment immediately Wednesday on what step it might take next.7 Tech Stocks That Are Heating Up as Anti-Trust Talk Cools Down
For the better part of the last year, Congress has had “big tech” in its crosshairs. But the reasons why largely depend on what side of the aisle a particular individual was on.
On the one hand, there are politicians who are concerned about the role that technology companies play in restricting the free flow of information. On the other hand, there are politicians that are concerned about these companies' stranglehold on competitors and innovation.
But big tech scored an important, albeit not final, victory in late June. At that time, a U.S. judge dismissed two separate complaints against Facebook (NASDAQ:FB). The question in front of the judge was whether Facebook held a monopoly on social media. Due to a surge in the company’s stock price after the ruling, Facebook became a member of the exclusive $1 trillion market cap club.
While big tech companies will remain under the Congressional microscope, there’s no denying that investors are looking at the ruling as a signal to rotate back into tech stocks. And that’s the focus of this presentation. What tech stocks should you be buying as anti-trust pressure eases?
It would be easy to start and end the list with the FAANG stocks. After all, the motto “Keep it Simple Stupid” comes to mind. There are simply those companies that offer products that are changing our lives now and will continue to do so in the future. And furthermore, customers will continue to pay for their products.
And I do have a couple of these stocks on my list. But the bulk of the stocks on this list are less expensive alternatives to at least one of the FAANG stocks. It doesn’t mean they’re superior companies, but a rising tide tends to lift all boats. And that means these companies have a large upside and you can purchase the stocks for a lot less. View the "7 Tech Stocks That Are Heating Up as Anti-Trust Talk Cools Down"