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Supreme Court Blocks Purdue Pharma's $6 Billion Settlement in 5-4 Vote, Exposing Sackler Family

Jun 27, 2024, 02:22 PM

The U.S. Supreme Court has blocked a $6 billion nationwide settlement involving Purdue Pharma, the maker of OxyContin, and the Sackler family. The decision was reached by a 5-4 vote, with the majority ruling that the bankruptcy code does not allow Purdue Pharma to enter a settlement that would shield the Sackler family from existing and potential opioid-related civil lawsuits without the consent of the claimants. The ruling leaves the Sackler family, who are the owners of Purdue Pharma, exposed to further legal action and puts billions of dollars in payments to victims of the opioid epidemic at risk. The court's decision highlights an ideologically diverse coalition among the justices, with Justice Gorsuch writing for the majority and Chief Justice Roberts, along with Justices Sotomayor, Kagan, and Kavanaugh, dissenting. This ruling requires Purdue Pharma to renegotiate a new settlement with states, cities, counties, and Native American tribes affected by the opioid crisis.