Supreme Court rejects controversial Purdue Pharma bankruptcy deal

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In a 5-4 decision, the justices ruled that the multibillion opioid settlement inappropriately protected the Sackler family.

Kathleen Scarpone, left, of Kingston, N.H., and Cheryl Juaire, second from left, of Marlborough, Mass., protest in front of the Arthur M. Sackler Museum, at Harvard University, April 12, 2019, in Cambridge, Mass. Scarpone, who lost her son to OxyContin addiction, and Juarie addressed three Sackler family members during a virtual U.S. Bankruptcy Court hearing, Thursday, March 10, 2022.

Writing for the court majority, Justice Neil Gorsuch said that U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy."The bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seek to discharge claims against a non-debtor without the consent of affected claimants," he wrote.

"Today's decision is wrong on the law and devastating for more than 100,000 opioid victims and their families," Kavanaugh wrote.

 

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