Big pharma’s moment of reckoning for roles in the opioid crisis began to unravel recently. On November 24, 2020, opioid maker Purdue Pharma LP pleaded guilty to fraud and kickback conspiracies amid a flurry of litigation over its role in the opioid epidemic. Purdue Pharma pitched a massive bankruptcy settlement to essentially make the bulk of litigation go away.

But a federal judge tossed out OxyContin maker Purdue Pharma’s bankruptcy settlement on December 16—including thousands of individual lawsuits—because of one particular, pricey provision that would have shielded members of the Sackler family from facing lawsuits of their own.

The Rise of Opioid Drugs

The Sackler family’s company Purdue Pharma unveiled OxyContin® 25 years ago, before more powerful opioids started popping up everywhere, including on the street. Documents made public in 2020 show how Purdue Pharma actively pushed to get higher numbers of prescriptions for painkillers. This happened before America hit a “record high” of drug overdoses during the pandemic last year, crowning decades of addiction, caused largely by people who are introduced to drugs through opioids.

While a New York bankruptcy court initially approved the bankruptcy settlement, it was quickly struck down. U.S. District Judge Colleen McMahon said in a written opinion on Thursday the New York bankruptcy court that approved the settlement did not have authority to grant the Sacklers immunity from future opioid litigation.

The Sackler Family—accused of fueling the opioid epidemic through doctor perks and more—insisted on installing legal shields, or nondebtor releases, in exchange for a $4.5 billion cash payout to resolve opioid litigation. Nondebtor releases protect parties that have not filed for bankruptcy themselves.

Under the scrapped deal, members of the Sackler family would give up ownership of the company—which would continue to sell opioids—but redirect profits to “fight the opioid crisis.” Under the deal, Purdue Pharma would also develop more novel anti-addiction and anti-overdose drugs and provide them at “little or no cost.”

Per the deal, the Sackler family members would fork up $4.5 billion in cash, USA Today reports, and charitable assets as part of larger deal that could hit $10 billion, which includes the future value of the new anti-addiction drugs, if they pan out. In other words, Purdue Pharma would continue to cash out on both ends of opioid addiction. Even WebMD saw an ethical problem with Purdue making buprenorphine wafers to solve addiction caused by the same company, in a 2018 analysis.

An Appeal is in Order

Purdue said it would appeal the decision in a statement published Friday.

“While the district court decision does not affect Purdue’s rock-solid operational stability or its ability to produce its many medications safely and effectively, it will delay, and perhaps end, the ability of creditors, communities, and individuals to receive billions in value to abate the opioid crisis,” said Steve Miller, Chairman of the Purdue Pharma LP Board of Directors. “These funds are needed now more than ever as overdose rates hit record-highs, and we are confident that we can successfully appeal this decision and deliver desperately needed funds to the communities and individuals suffering in the midst of this crisis.”

The Sackler saga was even turned into a live action series, Hulu’s Dopesick—which asks hard-hitting questions such as whether or not Purdue Pharma and the Sackler family are truly responsible for their roles in the opioid crisis.

The Associated Press reports that Connecticut Attorney General William Tong, who slammed the $4.5 billion deal, called the ruling “a seismic victory for justice and accountability.” He also said the judgement will “re-open the deeply flawed Purdue bankruptcy and force the Sackler family to confront the pain and devastation they have caused.”

In 2021, the opioid crisis is worse than ever before. It’s important to keep in mind that people living in high pain still need access to opioids, and often get confused with addicts.

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Texans will have the ability to legally manufacture smokable hemp products after all. A judge in the Travis County District Court in Texas ruled that a ban on smokable hemp in the state is unconstitutional—siding with several hemp companies that filed a lawsuit, challenging the 2019 ban on smokable hemp products passed by Texas lawmakers.

Last year, four hemp businesses filed the lawsuit in a Travis County District Court against the Texas Department of State Health Services and its commissioner—John Hellerstedt. In the end, they prevailed. This follows a ruling last week that allows smokable hemp to be sold in Texas. With the latest ruling, smokable hemp products can also be manufactured in the state.

Judge Lora Livingston of the 261st District Court sent a letter dated August 23 with her ruling to toss out the ban in the case Crown Distributing LLC, et al. v. Texas Department of State Health Services, et al. The judge indicated in the letter that a final judgment should be prepared and submitted for her signature soon.

In the ruling, Judge Livingston ruled that Section 443.204(4) of the Texas Health and Safety Code and Section 122.301(b) of the Texas Agriculture Code violate the Texas Constitution.

Section 443.204(4) of the Health and Safety code reads “the processing or manufacturing of a consumable hemp product for smoking is prohibited.” Section 122.301(b) of the Agriculture Code clarifies that a state agency “may not authorize a person to manufacture a product containing hemp for smoking.”

Judge Livingston ruled that “25 Texas Administrative Code Section 300.104 is invalid in its entirety.” Section 300.104 regards the manufacturing and sale of hemp, specifically.

The judge also granted a permanent injunction against the Texas Department of State Health Services from enforcing the ban via the sections above.

According to locals, the ban didn’t apply to using smokable hemp—only manufacturing it—so Texas residents were routinely crossing state lines or going online to buy it.

Several months ago, the Dallas Observer reported that Texas law enforcement officers keep confiscated hemp-derived products in general, which are legal at the federal level under the 2018 Farm Bill. 

The Hemp Industry Rejoices Ban Lift on Smokable Hemp

Hemp industry insiders across the board were thrilled with the latest legal curveball—considering the vast potential of hemp cigarettes and similar products. As more people become interested in smoking cannabis during the day without it impacting workflow and motor skills, hemp cigarette products are booming.

Smokable hemp products are frequently a hot topic among opponents to cannabis reform because they are almost indistinguishable from cannabis products. They are favored by some consumers because they offer fast delivery of hemp-derived CBD. Due to their popularity, smokable hemp-derived CBD products represent a significant share of the overall CBD market.

“Today’s ruling is a major win for Texas’ hemp industry, and may set a new standard in similar cases across the country,” President of Texas Hemp Growers Zachary Maxwell said in a release. “The attorneys behind the Texas Hemp Legal Defense Fund fought hard, brought fact-based arguments to the courtroom and proved the undeniable financial harm caused by this cavalier ban.”

Hemp Industry Daily called it a “watershed decision” that unlocks Texas to a hemp market that could potentially generate $400 million in annual sales by 2025.

Several other states are moving in the same direction. A few years ago, a judge in Indiana also ruled that banning smokable hemp was unconstitutional. Earlier this year, a similar bill passed in Louisiana, allowing smokable forms of cannabis.

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