The Supreme Court ruled on Thursday that the settlement and bankruptcy reorganization of opioid maker Purdue Pharma was inappropriate due to the legal protections it extended to the Sackler family, the company’s owners.
The court determined that the legal shield provided by bankruptcy should not cover the Sackler family, who had not filed for bankruptcy themselves, as reported by the AP.
A family of victims expressed approval of the decision.
“This decision is significant because if it had gone the other way, it would have set a dangerous precedent where white-collar criminals could avoid accountability through bankruptcy and demand third-party releases, like the Sacklers were attempting to do,” said Ed Bisch, the father of an opioid overdose victim, in an interview with Scripps News.
Supreme Court
Supreme Court rejects a nationwide opioid settlement with OxyContin maker
8:23 AM, Jun 27, 2024
After deliberating for six months, the Justices voted 5-4 to reject an agreement reached by state and local governments and victims, as reported by the Associated Press.
Bisch shared his personal experience with the opioid crisis, highlighting the devastation caused by OxyContin and the delayed government response to hold Purdue Pharma accountable.
The blocked settlement would have been one of the largest ever reached by a drug company and could have directed significant funds towards organizations working to combat the opioid epidemic.
