Supreme Court blocks $6 billion opioid settlement that would have given the Sackler family immunity | CNN Politics

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The Supreme Court has blocked a $6 billion Purdue Pharma bankruptcy settlement that would protect the Sackler family from opioid-related civil claims

In agreeing to pause the settlement, the court also said it would take up the case and hear arguments this December. The case arose after the reorganization in bankruptcy of OxyContin manufacturer Purdue Pharma – stemming from litigation arising from claims over its role in fueling the opioid addiction crisis. Until recently, Purdue was controlled by the Sackler family, who withdrew billions of dollars from the company before it filed for bankruptcy.

Prelogar said that the release of the Sacklers is not authorized by the bankruptcy code and constitutes an “abuse of the bankruptcy system.” The settlement between the Sacklers and eight states, as well as the District of Columbia, was initially agreed upon in March. Among those states is Ohio, whose attorney general said Thursday that he was disappointed that the justices paused the settlement and agreed to hear the case.

 

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