U.S. Bankruptcy Judge Sean Lane on Wednesday rejected Dr. Richard Sackler and his wife Lin Gao's motion to overturn an earlier ruling that designated their 10,000-square-foot waterfront mansion in Greenwich, Connecticut as an asset for a $7.4 billion opioid settlement. The couple has been legally barred from interfering with the sale of the property.
The six-bedroom estate, built in 1949 and sitting on more than 2 acres with an inground pool, was sold by one Sackler family trust to another for nearly $63 million in April. Sackler family trustees requested that Gao and her minor children be ejected from the home by October 31 and that all artwork be removed and placed in storage.
Judge Lane stated during the hearing in White Plains, New York that the Greenwich property is not Sackler and Gao's to control. "This is not a victimless crime your clients are perpetrating," Lane told Sackler's attorney Stephen Hornung. "I am profoundly concerned about the victims of the opioid epidemic having to wait for what's their due in terms of getting payment, by virtue of this."
Lane warned that eviction and additional court sanctions remain possible. The judge noted that Sackler owns four other homes, including his primary residence in Florida.
The settlement resolves tens of thousands of lawsuits filed against Purdue Pharma by victims of the opioid epidemic. Purdue Pharma ceased operations in May, and its assets were transferred to Knoa Pharma, an independent public benefit corporation whose profits will address the opioid crisis. Under the settlement terms, Sackler family members were barred from the opioid manufacturing business in other countries and agreed not to have their names placed on institutions as part of charitable contributions.