Under the OxyContin maker’s plan, the Sackler family—which previously controlled the company—would’ve been released from any legal liability in future cases.
The bankruptcy reorganization of Purdue Pharma came to a screeching halt on Thursday after the Supreme Court took up the Biden administration’s emergency request to appeal the deal. Under the OxyContin maker’s plan, the Sackler family—which previously controlled the company—agreed to pay $6 billion to settle opioid-related civil claims and give up ownership of Purdue Pharma. But the catch? The deal would also release the Sackler family from any legal liability in future cases. In court documents, the government has raised objections to the plan as “exceptional and unprecedented” and pointed out initial disagreements in the lower courts on when individuals whose actions have caused societal harm can be protected from liability. Now, the Supreme Court will hear oral arguments about the case in December and likely issue a ruling sometime early next year.
