The Supreme Court has agreed to hear arguments this December concerning Purdue Pharma’s bankruptcy claims. Until then, the high court has blocked a $6 Billion settlement fund for cases related to opioid abuse.
Purdue is “confident in the legality of [our] nearly universally supported Plan of Reorganization, and optimistic the Supreme Court will agree.”
The government’s concern is that the Sackler family’s responsibility is completely discharged, setting precedence for future billion-dollar bankruptcy settlements without holding the defendant(s) responsible.
Release of the Sacklers through the bankruptcy code “constitutes an abuse of the bankruptcy system”, Solicitor General Elizabeth Prelogar, representing US Trustee of the reorganization William Harrington, said in court papers.
Sources:
https://www.cnbc.com/2023/08/10/supreme-court-blocks-purdue-pharmas-6-billion-opioid-settlement-will-hear-challenge.html
https://www.cnn.com/2023/08/10/politics/supreme-court-purdue-pharma-opioid-settlement/index.html
https://www.supremecourt.gov/orders/courtorders/081023zr1_986b.pdf
