Supreme Court blocks Purdue Pharma’s bankruptcy proceedings, delaying settlement with Sackler family
The Supreme Court has halted Purdue Pharma’s bankruptcy proceedings, which would have provided the Sackler family with extensive protection from civil claims related to the opioid crisis. The Biden administration has criticized the arrangement as “unprecedented” and raised concerns about the Sacklers’ liability.
The court’s decision to pause the settlement also means that the case will be heard and arguments will be presented in December. The bankruptcy of OxyContin manufacturer Purdue Pharma was prompted by numerous lawsuits accusing the company of contributing to the opioid addiction crisis.
Until recently, the Sackler family controlled Purdue Pharma and withdrew billions of dollars from the company before it filed for bankruptcy. As part of the reorganization plan, the Sacklers have agreed to contribute up to $6 billion to Purdue’s reorganization fund, but only on the condition that they are released from civil liability.
The government, representing the US Trustee, has described the proposed plan as “exceptional and unprecedented” in court documents. It highlights the division among lower courts regarding the release of parties from liability for actions that have caused societal harm.
This is a developing story, and updates will be provided as more information becomes available.
What led the Supreme Court to temporarily halt Purdue Pharma’s bankruptcy proceedings and delay the settlement with the Sackler family?
Supreme Court Puts Brakes on Purdue Pharma Bankruptcy, Delays Settlement with Sackler Family
In a monumental move, the Supreme Court has temporarily halted Purdue Pharma’s bankruptcy proceedings, putting a significant dent in the Sackler family’s efforts to shield themselves from civil claims related to the devastating opioid crisis. The Biden administration has come out strongly against this arrangement, deeming it “unprecedented” and expressing concerns over the familial liabilities.
This ruling not only pauses the settlement but also sets the stage for a crucial hearing and the presentation of arguments in December. Purdue Pharma, the manufacturer of OxyContin, filed for bankruptcy in response to a cascade of lawsuits that held the company responsible for its role in fueling the opioid addiction epidemic.
Until recently, the Sackler family maintained control over Purdue Pharma and reaped billions of dollars from the company before it sought bankruptcy protection. As part of the reorganization plan, the Sacklers had agreed to contribute up to $6 billion to Purdue’s restructuring fund, but with a major caveat — they demanded complete immunity from civil liability.
The government, acting on behalf of the US Trustee, has voiced strong opposition to this proposed plan, deeming it ”exceptional and unprecedented” in court documents. It draws attention to the conflicting rulings across lower courts regarding the release of individuals from liability for actions that have caused significant harm to society.
This is a developing story, and we will provide updates as more information becomes available.
Finally, some accountability for the Sackler family and justice for the victims of the opioid epidemic.
Riley: This is a huge win for those affected by Purdue Pharma’s actions, giving hope for a fair resolution and compensation.
Ethan: It’s about time the Supreme Court stepped in to prevent Purdue Pharma and the Sackler family from evading their responsibility.
Ava: This decision shows that the legal system is finally taking the opioid crisis seriously and prioritizing the victims’ rights.
Lucas: Thankful that the Supreme Court recognizes the significance of this case and puts an end to Purdue Pharma’s attempts to escape liability.
Nora: This ruling gives hope to all the families who have suffered due to Purdue Pharma’s unethical practices and brings us one step closer to justice.
Logan: The Supreme Court’s decision is a blow to Purdue Pharma’s tactics and paves the way for a fair examination of the Sackler family’s role in the opioid crisis.
Gabriella: Holding Purdue Pharma accountable and preventing the Sackler family from avoiding liability is a vital step towards justice for the victims and their families.
Caleb: Finally, the doors are closing on Purdue Pharma’s attempts to shield themselves and the Sackler family from the consequences of their actions.
Sarah: This ruling is a crucial victory for all those affected by the opioid crisis and sends a powerful message that no one is above the law.
Max: Thank you, Supreme Court, for recognizing the urgency of this case and prioritizing the pursuit of justice over Purdue Pharma’s bankruptcy proceedings.
Daniel: The Supreme Court’s decision is a glimmer of hope for those impacted by the opioid crisis, proving that nobody should be able to evade accountability.
Lily: This ruling serves as a beacon of hope for the countless lives affected by the opioid epidemic, and a reminder that justice will prevail.
In time! This decision is a step towards them being held responsible for their actions.