The Supreme Court agreed on Thursday to consider the government’s challenge of a bankruptcy settlement involving Purdue Pharma, putting on pause a deal that would have shielded members of the wealthy Sackler family from civil opioid lawsuits in exchange for payments of up to $6 billion to thousands of plaintiffs.
In doing so, the court sided with the Justice Department, which had requested the court put the settlement plan on hold while it considered reviewing the agreement.
The government has argued that the family behind Purdue Pharma, maker of the prescription painkiller OxyContin, should not be able to take advantage of legal protections meant for debtors in “financial distress.”The court’s order, which was unsigned, gave no reasons and included no public dissents, adds to the uncertainty around the plan to compensate states, local governments, tribes and individuals harmed by the opioid crisis while offering protection for the Sackler family.
The order specified that the justices would hear arguments in the case in December.
The court’s decision to take up the challenge to the bankruptcy agreement is the latest twist in the yearslong legal battle over compensation for victims of the prescription drug crisis.
Persons:
Sackler
Organizations:
Purdue Pharma, Justice Department