US Supreme Court blocks Purdue Pharma bankruptcy settlement that would have protected Sackler family

The US Supreme Court has ruled against a bankruptcy plan that would have shielded the Sackler family from legal liability.

On Thursday, the court ruled against an estimated $US6 billion Purdue Pharma bankruptcy plan that would have shielded the Sackler family – which owned and controlled the company – from legal liability. The company, but not the family, sought bankruptcy protection in 2019 in exchange for contributions to a global settlement deal.That settlement would have forever protected the Sacklers – as well as hundreds of affiliates and other Purdue Pharma insiders – from all opioid-related civil claims.

But bankruptcy is increasingly used — and, some critics allege, abused — by wealthy corporations and defendants threatened by costly lawsuits instead of traditional debts. The ruling represented a victory for President Joe Biden's administration, which had challenged the settlement as an abuse of bankruptcy protections meant for debtors in financial distress, not people like the Sacklers.

Law Law Latest News, Law Law Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Lindsey Graham vows to block Democrats’ supreme court ethics billSenate Democrats are still working unanimously to move bill forward this week
Source: GuardianAus - 🏆 1. / 98 Read more »

The US supreme court just basically legalized briberyBy sheer coincidence, this ruling concerns the sort of generous ‘gifts’ and ‘gratuities’ that justices have been known to accept
Source: GuardianAus - 🏆 1. / 98 Read more »

India’s supreme court to rule on new penal code permitting marital rapeRights groups protesting at Modi government’s view that criminalising sexual assault violates ‘sanctity’ of marriage
Source: GuardianAus - 🏆 1. / 98 Read more »

US supreme court to issue decisions as term enters final stretch with blockbuster rulings outstandingRuling on Trump’s immunity claim still to come after unofficial abortion opinion reportedly briefly posted on court website
Source: GuardianAus - 🏆 1. / 98 Read more »

US supreme court allows emergency abortions in Idaho for nowCase’s return to lower court potentially delays a final decision to beyond the November elections
Source: GuardianAus - 🏆 1. / 98 Read more »

Sarah Finch: climate activism ‘early adopter’ behind supreme court winUK campaigner who fronted lawsuit on future impact of fossil fuel projects says she fears for future despite ruling
Source: GuardianAus - 🏆 1. / 98 Read more »