HABesen The U.S. Supreme Court has ruled that a bankruptcy court erred during the bankruptcy reorganization of Purdue Pharma when its granted legal protections to the Sackler family in exchange for a $6B settlement.
The 5-4 decision found that the bankruptcy court did not have the authority to release the Sacklers from any future litigation from prescription opioid victims. Purdue manufactured OxyContin, a powerful synthetic opioid pain treatment and was accused of using aggressive marketing tactics and downplaying abuse risks to doctors. "Confining ourselves to the question presented, the Court holds only that the bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seeks to discharge claims against a nondebtor without the consent of affected claimants," the decision reads .
As a result of the ruling, new settlement discussions will likely be needed. The case is Harrington v. Purdue Pharma L.
P. More on Purdue Pharma Purdue Pharma bankruptcy settlement heads to Supreme Court review Purdue Pharma, Sacklers reach new $6B opioid settlement with states.