Supreme Court blocks Purdue Pharma opioid settlement

WASHINGTON — The Supreme Court on Thursday blew up the massive bankruptcy reorganization of opioid maker Purdue Pharma, finding that the settlement inappropriately included legal protections for the Sackler family, meaning that billions of dollars secured for victims is now threatened.

The court on a 5-4 vote ruled that the bankruptcy court did not have the authority to release the Sackler family members from legal claims made by opioid victims.

As part of the deal, the family, which controlled the company, had agreed to pay $6 billion that could be used to settle opioid-related claims, but only in return for a complete release from any liability in future cases.

During oral arguments in December, a lawyer representing some of the victims told the justices that there was “no viable path” to victims receiving compensation if the deal including the Sackler agreement was not upheld.

The case drew further attention to the lingering effects of the opioid crisis and the role that Sackler-owned Purdue played in creating it.

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