Supreme Court temporarily blocks Purdue Pharma settlement that would shield Sackler family

that would shield members of the Sackler family who own the company from civil lawsuits over the toll of opioids.to a request from the Biden administration to put the brakes on an agreement reached last year with state and local governments. In addition, the high court will hear arguments before the end of the year over whether the settlement can proceed.

But a key component of the agreement would shield family members, who are not seeking bankruptcy protection as individuals, from lawsuits. The justices directed the parties to address whether bankruptcy law authorizes a blanket shield from lawsuits filed by all opioid victims. The 2nd U.S. Circuit Court of Appeals had allowed the reorganization plan to proceed.with the Supreme Court, Solicitor General Elizabeth Prelogar said that if the lower court's decision is allowed to stand, it would provide a"roadmap for wealthy corporations and individuals to misuse the bankruptcy system to avoid mass tort liability.

Lawyers for Purdue and other parties to the agreement had urged the justices to stay out of the case."This is a baseless stay application that, if granted, would harm victims and needlessly delay the distribution of billions of dollars to abate the opioid crisis," Purdue's lawyers wrote.

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