Source: AFP
The U.S. Supreme Court on Thursday threw out Purdue Pharma’s $6 billion opioid settlement to immunize the Sackler family, which controlled the drugmaker, from future litigation.
In a 5-4 ruling, the justices agreed with the Justice Department, which argued that the Sacklers, who made tens of billions of dollars by flooding the country with highly addictive opioids, should not get sweeping legal protections in the controversial settlement.
The court held that “the bankruptcy code does not permit this type of order,” in a majority opinion written by Neil Gorsuch and joined by Clarence Thomas, Samuel Alito, Amy Coney Barrett and Ketanji Brown Jackson.
Brett Kavanaugh, Chief Justice John Roberts, Sonia Sotomayor and Elena Kagan dissented, in a case where the justices defied conservative-liberal divides.
“The Sacklers have not agreed to put anything close to their full assets on the table for opioid victims,” Gorsuch wrote.
![](https://images.yen.com.gh/images/0a733a9b06e65c71.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/0a733a9b06e65c71.jpg?impolicy=cropped-image&imwidth=256)
Read also
The US Supreme Court refuses to limit the government’s contacts with social media companies
“However, they are seeking an injunction that would eliminate virtually all claims against them for fraud, intentional injury, and even wrongful death, all without the consent of those who have brought and seek to bring such claims.”
“If past is prologue,” Gorsuch said, citing the Justice Department, “there may be a better deal on the horizon.”
A flawed agreement better than no agreement?
In a storming dissent, Cavanaugh said, “Today’s decision is wrong in law and devastating to more than 100,000 opioid victims and their families.”
“The plan was a shining example of the bankruptcy system at work,” he continued.
“Not surprisingly, therefore, nearly all of the opioid victims and creditors in this case strongly support approval of Purdue’s bankruptcy reorganization plan,” Kavanaugh said, with only a “small group” opposed, including some creditors in Canada.
![](https://images.yen.com.gh/images/981e3be72950ac4b.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/981e3be72950ac4b.jpg?impolicy=cropped-image&imwidth=256)
Read also
The UK is facing a strained economy after the election
In addition, he added, Thursday’s decision could have implications for cases such as those involving abuse claims against the Catholic Church, which was based on similar agreements.
Purdue’s 2022 deal, which had been on hold since last August, came after years of negotiations involving officials from all 50 US states.
He earmarked $6 billion for victims of the opioid epidemic from the 2019 bankruptcy of Purdue, which made prescription painkillers like OxyContin.
The settlement gave the families of Raymond Sackler and Mortimer Sackler protection from all future civil claims, effectively shielding their other assets from opioid-related lawsuits.
The Justice Department, acting as a bankruptcy watchdog known as the U.S. trustee, accused the Sacklers of siphoning $11 billion from Purdue Pharma over the decade before the company filed for bankruptcy.
Freewheel Recipes
Arguing the case in December, Deputy Solicitor General Curtis Gannon outlined the Biden administration’s objections to the deal.
![](https://images.yen.com.gh/images/b26927d97aab41f7.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/b26927d97aab41f7.jpg?impolicy=cropped-image&imwidth=256)
Read also
Boeing can avoid criminal charges for violations: report
“It allows the Sacklers to decide how much to contribute,” Gannon said. “It gives the Sacklers the functional equivalent of a discharge.”
But Purdue Pharma argued that rejecting the settlement could lead to years of litigation and leave victims without any compensation at all.
“Today’s decision is heartbreaking,” Purdue said in a statement, adding, however, “the decision takes nothing away from our dual goals of using settlement dollars to reduce opioids and turn the company into an engine for good.”
Purdue’s bankruptcy stemmed directly from the massive nationwide litigation against it and other big drug companies and pharmaceutical companies for knowingly fueling the addiction crisis.
According to the March 2022 settlement, the Sacklers were “absolutely, unconditionally, irrevocably, completely, permanently, forever and ever” released from further legal liability.
The opioid epidemic has caused more than 500,000 overdose deaths in the United States over two decades, authorities say.
Purdue and other opioid makers have been accused of encouraging free prescriptions for their products through aggressive marketing tactics while hiding how addictive the drugs are.
![](https://images.yen.com.gh/images/1f93866476d85fa1.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/1f93866476d85fa1.jpg?impolicy=cropped-image&imwidth=256)
Read also
Germany’s coalition is deadlocked over the 2025 budget
Facing an avalanche of litigation, in 2021 Purdue pleaded guilty to three criminal charges related to the marketing of OxyContin.
Source: AFP