Purdue Pharma’s $6 Billion Opioid Settlement Is Denied By The Supreme Court

(CTN News) -MThe Supreme Court temporarily blocked Purdue Pharma, the makers of OxyContin (a highly addictive Opioid), from pursuing bankruptcy proceedings and settling for $6 billion.

An appeals court in New York originally approved the bankruptcy plan, which has since been heavily criticized.

Purdue Pharma’s former owners, the Sackler family, would have been protected from any future liability and lawsuits relating to opioids.

After receiving inquiries from a US Trustee of the Department of Justice who questioned the authority of state and lower courts to make such large decisions with widespread consequences, the Biden administration requested the Supreme Court to put the case on hold.

The Supreme Court has agreed to temporarily halt proceedings and hear arguments in the case scheduled for December.

Family Sackler Contributes To Opioid Crisis

Controversy is not new to the Sackler family.

However, critics claim that the family played an unapologetic role in pushing and promoting opioids, even as they were aware of the dangers associated with the ongoing opioid epidemic.

Additionally, the family is being criticized for their decision to sell Purdue Pharma only after withdrawing billions of dollars from the company prior to its filing for bankruptcy.

Critics of the settlement pointed out that wealthy members of the Sackler family, who are not personally bankrupt, were included and broadly protected. However, the settlement does not protect individual family members from criminal prosecution by the government if the government so chooses.

Purdue Pharma Bankruptcy Tactic

Using bankruptcy to protect one’s legal rights is not a new tactic, as was recently demonstrated by Johnson & Johnson.

There are many companies that use bankruptcy clauses (and cash offers) as a means of limiting their liability and obtaining future legal protection.

During the December hearings, the Supreme Court wants this issue at the center, as both sides of Congress condemn the practice.

As part of a Chapter 11 filing, a representative of the Supreme Court requested that all parties prepare arguments focused on one question: “Does the U.S. bankruptcy code permit courts to approve deals that extinguish claims against third parties that are not bankrupt? ”

Purdue Pharma and the Sackler family will need to take responsibility for their role in the Opioid epidemic if the ultimate decision holds significant weight and dictates how large companies will be able to utilize bankruptcy filings in the future.

Addiction to opioids

In 2007 and 2020, Purdue Pharma pleaded guilty to federal charges alleging that its marketing tactics were intentionally deceptive, and that OxyContin’s addictive properties were downplayed.

As per public health experts, OxyContin has played an irreparable role in the Opioid crisis, which led to over 80,000 overdose deaths in the United States by 2022.

There is help available for those who are addicted to OxyContin or other opioids. Discover your treatment options by browsing our rehab directory or contacting a treatment provider today.

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