Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma

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The Supreme Court rejected a nationwide settlement with OxyContin maker Purdue Pharma that would have shielded members of the Sackler family who own the company from civil lawsuits

WASHINGTON — The Supreme Court on Thursday rejected a nationwide settlement with OxyContin maker Purdue Pharma that would have shielded members of the Sackler family who own the company from civil lawsuits over the toll of opioids but also would have provided billions of dollars to combat the opioid epidemic.

After deliberating more than six months, the justices in a 5-4 vote blocked an agreement hammered out with state and local governments and victims. The Sacklers would have contributed up to $6 billion and given up ownership of the company but retained billions more. The agreement provided that the company would emerge from bankruptcy as a different entity, with its profits used for treatment and prevention.

"The unfortunate reality is that the alternative is costly and chaotic legal proceedings in courtrooms across the country," they said in a statement."While we are confident that we would prevail in any future litigation given the profound misrepresentations about our families and the opioid crisis, we continue to believe that a swift negotiated agreement to provide billions of dollars for people and communities in need is the best way forward.

"This is a step toward justice. It was outrageous what they were trying to get away with," he said Thursday."They have made a mockery of the justice system and then they tried to make a mockery of the bankruptcy system." The issue for the justices was whether the legal shield that bankruptcy provides can be extended to people such as the Sacklers, who have not declared bankruptcy themselves. Lower courts had issued conflicting decisions over that issue, which also has implications for other major product liability lawsuits settled through the bankruptcy system.

But the court majority that also included Justices Samuel Alito, Amy Coney Barrett, Ketanji Brown Jackson and Clarence Thomas disagreed.

 

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