Supreme Court pauses Purdue Pharma bankruptcy deal
BY NATHANIEL WEIXEL - 08/10/23 4:40 PM ETThe Supreme Court on Thursday agreed to consider the Biden administration’s challenge to a bankruptcy settlement for Purdue Pharma, pausing the $6 billion deal over the administration’s concerns about a provision that would shield the members of the Sackler family, who own the company, from future opioid-related claims.
The court slated arguments in the case for December, leading to a decision likely early next year. The stay will remain in place until the decision is handed down.
Purdue, the maker of OxyContin, filed for bankruptcy in 2019 in an attempt to settle about 3,000 lawsuits from states, tribes and other local entities related to its aggressive opioid marketing. Lawsuits argued that the marketing contributed to the opioid crisis that has killed nearly 500,000 people over the past 20 years.
The settlement plan included a provision called a “third party release” that would shield members of the Sackler family and a long list of their associates from future opioid lawsuits.
The U.S. Court of Appeals for the 2nd Circuit approved the settlement plan in May.
The Biden Justice Department argued that the bankruptcy court did not have the authority to release the Sackler family members from the claims.
In the motion asking the Supreme Court to take up the case, Solicitor General Elizabeth Prelogar noted that Sackler family members withdrew nearly $11 billion from the company over the course of about 10 years, transferring a significant portion of their wealth overseas in an effort to shield themselves from liability.
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https://thehill.com/regulation/court-battles/4148000-supreme-court-pauses-purdue-pharma-bankruptcy-deal/
