Supreme Court blocks Purdue Pharma opioid settlement that shields Sackler family of liability

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The 5-4 opinion was authored by Justice Neil Gorsuch.

People line up to get into the Supreme Court in Washington, D.C., June 26, 2024.struck down a hard-fought bankruptcy plan for OxyContin manufacturer Purdue Pharma that would have awarded $6 billion to state and local governments to fight opioid addiction and payouts to more than 100,000 victims of opioid overdoses while also extending immunity to Purdue's owners, the Sackler family.

The discharge was the heart of the case, challenged by the U.S. government as unlawful and unfair to a small number of victims in the class-action suit who wanted to preserve a chance to sue the Sacklers for damages in civil court. More than 95% of victims and creditors who voted on the plan during the proceedings approved of it.

"Opioid victims are now deprived of the substantial monetary recovery that they long fought for and finally secured after years of litigation," he wrote. The nationwide settlement would have forced the Sacklers to give up Purdue and transform the business into a nonprofit manufacturer of opioid addiction treatments. It would also have awarded millions of dollars to state and local governments to respond to the epidemic and more than $750 million to individuals in payments ranging from $3,800 to $45,000.

 

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