AP NEWS

Report: Stamford hedge fund stops investing with Sacklers

March 8, 2019

STAMFORD — A major hedge fund based in the city has reportedly cut ties with members of the Sackler family who own controversial OxyContin maker Purdue Pharma, according to the Wall Street Journal.

Hildene Capital Management told investment entities of Sackler family members late last year that the firm was no longer comfortable managing their money, the Journal reported Thursday. The same article also said that someone known by members of the firm had suffered an “opioid tragedy.”

Hildene declined to comment to Hearst Connecticut Media on the reported disassociation. Sackler family members could not be immediately reached for comment.

Based at 700 Canal St., in Stamford’s South End, Hildene operates about a half-mile south of Purdue’s downtown headquarters at 201 Tresser Blvd. Hildene manages more than $1 billion in assets, according to its website.

The Sacklers who own Purdue have come under intense scrutiny in recent weeks in the wake of hundreds of pages of courts documents released as part of lawsuits filed by Connecticut and Massachusetts.

Connecticut and Massachusetts are the first two states to not only sue Purdue as a company, but also take legal action against Sackler family members.

Their litigation alleges that eight Sacklers catalyzed the opioid crisis by directing the misleading marketing of pain drugs such as OxyContin, while using the revenues to make billions of dollars for themselves and their family.

More than 1,000 other, similar complaints have been filed against the company by cities, counties and states across the country.

Purdue has denied the lawsuits’ allegations and filed this week a motion to dismiss the Massachusetts complaint.

Those allegations have also ratcheted up pressure on political candidates and museums, universities and medical institutions that have received a share of the many millions donated by Sackler family members, one of the country’s most-prolific philanthropic families.

Connecticut’s Democratic Party recently disavowed tens of thousands of dollars in contributions that were made by Sackler family members in recent years.

Other major beneficiaries such as the University of Connecticut, Yale University and Greenwich Hospital have not denounced the family.

pschott@scni.com; 203-964-2236; twitter: @paulschott