For years, the Purdue bankruptcy has been working its way through the federal court system. Earlier this year, the United States Court of Appeals for the Second Circuit affirmed the Bankruptcy Court’s order which would pave the way for qualified individuals to file claims and eventually receive money from the Purdue bankruptcy.
Unfortunately, the government subsequently applied to the United States Supreme Court asking that the Court delay the effectiveness of the Second Circuit’s decision so that the United States Supreme Court could decide the underlying issue. The Supreme Court agreed to place a pause on the Second Circuit’s decision and decide the larger issue: Does the Bankruptcy Code authorize a court to approve, as part of a bankruptcy plan, a release that extinguishes claims held by the states, injured individuals, etc. against the Sackler family without the claimants’ consent.
Over the next month, the parties will finish making their written arguments to the Court and oral argument will be scheduled. There is no deadline for the Supreme Court to make its decision, but we will update the website as things develop.
