Credit: JHVEPhoto/Adobe Stock Eckert Seamans' $45M Settlement Over Ponzi Scheme Entanglement in Doubt After SCOTUS Scraps Purdue Pharma Deal
"The Supreme Court in Harrington made it clear that federal courts can no longer 'look the other way' and issue such free passes to mass tortfeasors such as Eckert who refuse to place their assets on the settlement negotiation table," argued attorney George Bochetto.
July 15, 2024 at 03:10 PM
6 minute read
What You Need to Know
- The Supreme Court's decision in Harrington v. Purdue Pharmaceuticals has thrown a new wrench into Eckert Seamans' settlement proceedings involving former partner John Pauciulo's involvement with Par Funding.
- The firm was looking to settle with the Par Funding receivership by providing $45 million from its insurer under the condition that further litigation on the matter would be barred.
- Those seeking to sue Eckert for malpractice and failure to supervise its former partner are already objecting to the settlement on the grounds of the Harrington case.
Eckert Seamans Cherin & Mellott's proposed $45 million settlement for the benefit of investors defrauded by cash advance company Par Funding may be in danger from an unexpected source: the recent U.S. Supreme Court ruling that blew up the massive bankruptcy deal negotiated by opioid manufacturer Purdue Pharma.
The Purdue deal ran aground over legal protections for the Sackler family, who controlled Purdue and made their fortune on opioid sales. And that ruling, in Harrington v. Purdue Pharmaceuticals, could now upend the settlement negotiated by the Pittsburgh-founded Am Law 200 firm regarding its former partner John Pauciulo's dealings with Par Funding, which would tap millions from the firm's malpractice insurance in exchange for an order barring further litigation on the matter, according to attorneys' statements at a July 12 status conference and court filings.
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