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.If you're enjoying this article, you'll love our daily morning newsletter, How To LA. Every weekday, you'll get fresh, community-driven stories that catch you up with our independent local news.The U.S.

Writing for the dissenters, Justice Brett Kavanugh said the ruling disrupts a deal that would have funneled money to communities and victims of the opioid crisis."Today's decision is wrong on the law and devastating for more than 100,000 opioid victims and their families," Kavanaugh wrote. "The result is simply based on the language of the law," Lipson said."You see a strong dissent from Justice Kavanaugh which reflects how emotional and difficult this case has been for hundreds of thousands of people."

"The Sackler families remain hopeful about reaching a resolution that provides substantial resources to help combat a complex public health crisis," the Sackler family statement said. But in the majority opinion, Gorsuch noted that only 20% of Oxcyontin victims cast votes. Also, the remaining 5% objected, contending the bankruptcy court exceeded its authority in allowing the Sacklers to hold on to half their wealth and escape further liability.The deal was also opposed by the U.S. Justice Department's bankruptcy watchdog agency, which argued the deal would have violated victims' constitutional rights to due process.

 

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