US Supreme Court wrestles with OxyContin maker’s bankruptcy deal – with billions of dollars at stake
- The settlement with Purdue Pharma would shield members of the Sackler family, who own the company, from civil lawsuits over the toll of opioids
- Under the deal, the Sacklers would contribute up to US$6 billion and give up ownership of the company, but retain billions more
The Supreme Court on Monday wrestled with a nationwide settlement with OxyContin maker Purdue Pharma that would shield members of the Sackler family who own the company from civil lawsuits over the toll of opioids.
The justices seemed by turns reluctant to break up an exhaustively negotiated agreement, but also leery of somehow rewarding the Sacklers.
The agreement hammered out with state and local governments and victims would provide billions of dollars to combat the opioid epidemic. The Sacklers would contribute up to US$6 billion and give up ownership of the company, but retain billions more. The company would emerge from bankruptcy as a different entity, with its profits used for treatment and prevention.
The High Court put the settlement on hold during the summer, in response to objections from the Biden administration.
Justice Elena Kagan seemed to sum up the questions that were nagging at some of the justices.
“It seems as though the federal government is standing in the way of that as against the huge, huge, huge majority of claimants,” Kagan said.
But later, she also said that in bankruptcies, protection against lawsuits has a price.
