Supreme Court Blocks Purdue Pharma Opioid Settlement, Exposing Sacklers to Lawsuits
The U.S. Supreme Court has blocked a proposed settlement with Purdue Pharma, the maker of OxyContin, that would have shielded the Sackler family from civil lawsuits while providing billions of dollars to address the opioid crisis. The settlement, which was contested by the Biden administration, would have allowed Purdue Pharma to restructure and emerge from bankruptcy as a new entity focused on addiction treatment and prevention, funded by up to $6 billion from the Sacklers.
The court's decision hinges on the interpretation of bankruptcy law, specifically whether legal protections can be extended to individuals who have not declared bankruptcy. The U.S. Bankruptcy Trustee argued that such protections are not permissible under existing law. The Supreme Court's ruling has significant implications for other major product liability cases settled through the bankruptcy system, as it challenges the precedent of offering immunity to non-debtor parties in exchange for financial contributions.
Despite broad support for the settlement among the victims, with 95% backing the plan, the court found that the bankruptcy court overstepped its authority by granting immunity to the Sackler family. This decision leaves unresolved thousands of lawsuits against Purdue Pharma and the Sacklers, maintaining their potential liability for their role in the opioid epidemic.
