Supreme Court Temporarily Blocks Purdue Pharma Settlement That Would’ve Protected The Sackler Family From Civil Lawsuits

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The Supreme Court now plans to hear this case in December.

Copyright 2020 The Associated Press. All rights reserved.During the bankruptcy proceedings of Purdue Pharma, one of the drug companies widely considered to be responsible for the opioid epidemic, the Sackler family had agreed to pay $6 billion to settle opioid-related claims in exchange for immunity from future cases related to opioid abuse.

Thursday’s decision from the court temporarily pauses that deal and sets the stage for the issue to be debated in front of Supreme Court justices in December. The question that will be debated centers around whether the bankruptcy court had the authority to approve such a deal, specifically whether it could shield the Sackler family from facing victims in court.

The challenge to the bankruptcy agreement was brought by the Department of Justice, which argued bankruptcy protections like the one in question should not be used to shield the Sacklers personally, according to thePurdue Pharma made billions of dollars on its incredibly popular painkiller Oxycontin, which was first approved in December 1995.

 

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