Supreme Court blocks Purdue Pharma's massive opioid settlement, will hear challenge

[BumRushDaShow]

Last edited Thu Aug 10, 2023, 07:46 PM - Edit history (2)

Source: CNBC

The Supreme Court on Thursday blocked, for now, a multi-billion-dollar bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to the opioid crisis. The Supreme Court also said it will hear a U.S. Bankruptcy trustee’s challenge to the settlement by Purdue, the maker of the opioid OxyContin, with all 50 U.S. states, and other parties.

The order Thursday directed parties to file briefs on a question of whether bankruptcy courts can approve a Chapter 11 reorganization that releases claims by non-debtors against non-debtor third parties “without the claimants’ consent.” There were no dissents by any of the court’s justices in the order granting the requested hold, which was sought by the Department of Justice.

The DOJ had argued in a court filing that the release of the Sacklers from civil liability “is not authorized by the Bankruptcy Code, constitutes an abuse of the bankruptcy system, and raises serious constitutional questions.” The Sackler family agreed as part of the settlement to contribute $6 billion to it over the next two decades.

The agreement also obligates Purdue to contribute more money after it becomes a different entity whose proceeds will be used to alleviate the opioid abuse crisis. The case will be argued in December at the high court. Purdue Pharma, in a statement, said “We are confident in the legality of our nearly universally supported Plan of Reorganization, and optimistic that the Supreme Court will agree.”

Read more: https://www.cnbc.com/2023/08/10/supreme-court-blocks-purdue-pharmas-6-billion-opioid-settlement-will-hear-challenge.html

---

Article updated.

Previous articles/headline -

Supreme Court blocks Purdue Pharma's $6 billion opioid settlement, will hear challenge

The Supreme Court on Thursday blocked, for now, a $6 billion bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to the opioid crisis.

The Supreme Court also said it will hear a challenge to the settlement by Purdue, the maker of the opioid OxyContin, by a U.S. Bankruptcy trustee.

The order Thursday directed parties to file briefs on a question of whether bankruptcy courts can approve a Chapter 11 reorganization that releases claims by non-debtors against not-debtor third parties "without the claimants' consent."

"We are confident in the legality of our nearly universally supported Plan of Reorganization, and optimistic that the Supreme Court will agree," the company said in a statement. "Even so, we are disappointed that the U.S. Trustee, despite having no concrete interest in the outcome of this process, has been able to single-handedly delay billions of dollars in value that should be put to use for victim compensation, opioid crisis abatement for communities across the country, and overdose rescue medicines."

The Supreme Court on Thursday blocked for now a $6 billion bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to the opioid crisis. The Supreme Court also said it will hear a challenge to the settlement by Purdue, the maker of the opioid OxyContin, by a U.S. Bankruptcy trustee.

The order Thursday directed parties to file briefs on a question of whether bankruptcy courts can approve a Chapter 11 reorganization that releases claims by non-debtors against not-debtor third parties "without the claimants' consent."

There were no dissents by any of the court's justices in the order granting the requested hold, which was sought by the Department of Justice.

The DOJ had argued in a court filing that the release of the Sacklers from civil liability "is not authorized by the Bankruptcy Code, constitutes an abuse of the bankruptcy system, and raises serious constitutional questions." The case will be argued in December at the high court.

The Supreme Court on Thursday blocked for now a $6 billion bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to the opioid crisis. The Supreme Court also said it will hear a challenge to the settlement by Purdue, the maker of the opioid OxyContin.

The order Thursday directed parties to file briefs on a question of whether bankruptcy courts can approve a Chapter 11 reorganization that releases claims by non-debtors against not-debtor third parties "without the claimants' consent."

Purdue reached the settlement in May with U.S. states and thousands of local governments. The value of the settlement could reach more than $10 billion ultimately.

Under the deal, the Sackler family agreed to relinquish control of the Stamford, Connecticut, company. The Supreme Court case will be argued by the end of this year.

Original article -

The Supreme Court on Thursday blocked for now a $6 billion bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to opioid abuse.

The Supreme Court also said it will hear a challenge to the settlement.


This is breaking news. Please check back for updates.