SCOTUS rules Sackler family can’t be protected under Purdue bankruptcy case
By Ray Bogan (Political Correspondent)
The Supreme Court ruled Thursday, June 27, that the Sackler family — which owned Purdue Pharma and marketed the opioid pain reliever OxyContin — is not immune from lawsuits. The high court said the deal made with a bankruptcy court to avoid liability is improper.
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Supreme Court Blocks Purdue Pharma Opioid Settlement That Shielded Sackler Family
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Click to see story on kffhealthnews.orgThe 5-4 decision was ideologically mixed. The opinion was written by Justice Neil Gorsuch, joined by Justices Thomas, Alito, Barrett and Jackson. The dissenting opinion was written by Justice Brett Kavanaugh and joined by Chief Justice John Roberts and Justices Sotomayor and Kagan.
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Here are the facts of the case from the court:
Between 1996 and 2019, Purdue made $34 billion in revenue mostly from the sale of OxyContin. That gave the Sackler family an estimated net worth of $14 billion. In 2007, a Purdue affiliate pleaded guilty to a federal felony for misbranding OxyContin as “less addictive” and “less subject to abuse” than other pain medications. Thousands of lawsuits followed, so the Sacklers began taking $11 billion out of the company thinking the lawsuits would eventually impact them directly.
During bankruptcy proceedings with Purdue, the family proposed to return $4.3 billion to the company in exchange for a judicial order releasing them from all opioid-related claims.
The Supreme Court just decided that can’t happen.
“The code generally reserves discharge for a debtor who places substantially all of their assets on the table,” Justice Gorsuch wrote in the majority opinion. “And, ordinarily, it does not include claims based on ‘fraud’ or those alleging ‘willful and malicious injury.’ The Sackler discharge defies these limitations. The Sacklers have not filed for bankruptcy, nor have they placed virtually all their assets on the table for distribution to creditors. Yet, they seek an order discharging a broad sweep of present and future claims against them, including ones for fraud and willful injury.”
Gorsuch also wrote that the decision is a “narrow one.”
“Nothing in the opinion should be construed to call into question consensual third-party releases offered in connection with a bankruptcy reorganization plan,” Gorsuch explained. “Nor does the Court express a view on what qualifies as a consensual release.”
However, there is concern this decision could negatively impact what opioid victims ultimately receive as compensation.
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“Today’s decision is wrong on the law and devastating for more than 100,000 opioid victims and their families,” Justice Kavanaugh wrote in the dissent. “The Court’s decision rewrites the text of the U.S. Bankruptcy Code and restricts the long-established authority of bankruptcy courts to fashion fair and equitable relief for mass-tort victims.”
The families of the late Dr. Mortimer Sackler and late Dr. Raymond Sackler said in a statement that they remain hopeful about reaching a resolution that provides substantial resources to combat a complex public health crisis.
The statement continued, “The unfortunate reality is that the alternative is costly and chaotic legal proceedings in courtrooms across the country. While we are confident that we would prevail in any future litigation given the profound misrepresentations about our families and the opioid crisis, we continue to believe that a swift negotiated agreement to provide billions of dollars for people and communities in need is the best way forward.”
It’s unclear exactly what happens next. The bankruptcy deal will have to be renegotiated and some victims’ families want the Sacklers to face criminal charges.
[RAY BOGAN]
The Supreme Court ruled Thursday the Sackler family, which owned Purdue Pharma and marketed the opioid pain reliever oxycontin, is not immune from lawsuits and that the deal it made with a bankruptcy court to avoid liability is improper.
The five to four decision was ideologically mixed. The opinion was written by Justice Gorsuch who was joined by Justices Thomas, Alito, Barrett and Jackson. The dissenting opinion was written by Justice Kavanuagh and joined by Chief Justice John Roberts and Justices Sotomayor and Kagan.
Between 1996 and 2019, Purdue made $34 billion in revenue mostly from the sale of Oxycontin. That gave the Sackler family an estimated net worth of $14 billion. In 2007, a Purdue affiliate pleaded guilty to a federal felony for misbranding OxyContin as “‘less addictive’” and “‘less subject to abuse” than other pain medications. Thousands of lawsuits followed so the Sacklers began taking $11 billion out of the company thinking the lawsuits would eventually impact them directly.
During bankruptcy proceedings with Purdue, the family proposed to return $4.3 billion to the company, in exchange for a judicial order releasing them from all opioid related claims. But the Supreme Court just decided that can’t happen.
Justice Gorsuch wrote in the majority opinion: “The code generally reserves discharge for a debtor who places substantially all of their assets on the table. And, ordinarily, it does not include claims based on “fraud” or those alleging “willful and malicious injury.” The Sackler discharge defies these limitations. The Sacklers have not filed for bankruptcy, nor have they placed virtually all their assets on the table for distribution to creditors. Yet, they seek an order discharging a broad sweep of present and future claims against them, including ones for fraud and willful injury.”
Gorsuch also wrote that the decision is a, “narrow one”.
He explained, “Nothing in the opinion should be construed to call into question consensual third-party releases offered in connection with a bankruptcy reorganization plan. Nor does the Court express a view on what qualifies as a consensual release…”
But there’s concern this decision could negatively impact what opioid victims ultimately receive as compensation.
Justice Kavanuagh wrote in the dissent: “Today’s decision is wrong on the law and devastating for more than 100,000 opioid victims and their families. The Court’s decision rewrites the text of the U. S. Bankruptcy Code and restricts the long-established authority of bankruptcy courts to fashion fair and equitable relief for mass-tort victims.”
It’s unclear exactly what happens next. The bankruptcy deal will have to be renegotiated and some victims’ families want the Sacklers to face criminal charges.
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Supreme Court Blocks Purdue Pharma Opioid Settlement That Shielded Sackler Family
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Click to see story on Orlando SentinelThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WCSHThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The Delaware County Daily TimesThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on News and TribuneSackler family immunity shield nixed by Supreme Court, thwarting $6 billion opioid settlement
Click to see story on Courthouse News ServiceThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on CTV NewsSupreme Court rejects multibillion-dollar Purdue Pharma opioid settlement that shielded Sackler family
Click to see story on KRDOThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know
Click to see story on KIFIUS Supreme Court rejects opioid settlement that shields owners from lawsuits
Click to see story on South China Morning PostThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know
Click to see story on KVIAThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know
Click to see story on Winnipeg Free PressPurdue Pharma Bankruptcy Plan Rejected by Supreme Court, Billionaire Sacklers to Face Lawsuits – Invesco Pharmaceuticals ETF (ARCA:PJP), First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:FTXH)
Click to see story on BenzingaSupreme Court rejects US opioid settlement with Purdue Pharma
Click to see story on VOA NewsSupreme Court tosses Purdue Pharma opioid bankruptcy settlement
Click to see story on UPIThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Washington Top NewsThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WPLGThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on News 4 JAXThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Pioneer PressThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know
Click to see story on WKMGThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Click on DetroitSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KCRA 3The Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on San Diego Union TribuneSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Portland Press HeraldSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WCVBJustices Block Settlement with Purdue Pharma
Click to see story on Political WireSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WLWTThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The Billings GazetteSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WMURSupreme Court rejects $10 billion Purdue Pharma opioid settlement that shields Sackler family
Click to see story on Alabama LiveSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WLKYSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WESHThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Helena Independent RecordSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KETVSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WDSUSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WTAESupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WYFFSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KCCIFactbox-Bankruptcy cases to watch after US Supreme Court Purdue Pharma ruling
Click to see story on WTVBThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Denver PostSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KMBCSupreme Court rejects nationwide opioid settlement with OxyContin maker
Click to see story on The OregonianSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WISNSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WBAL-TVThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on MissoulianSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WPTZSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WMTWThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Montana StandardSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WVTMSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WAPTThe Supreme Court just rejected a deal with the maker of OxyContin that would have shielded the billionaire Sackler family from liability—but provided billions of dollars to fight opioids
Click to see story on FortuneOpioid crisis: The American Supreme Court blocks the compensation agreement of the Purdue laboratory
Click to see story on La LibreSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KOATSupreme Court rejects multibillion-dollar Purdue Pharma opioid settlement that shielded Sackler family
Click to see story on KWWLThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on 9NEWS DenverSupreme Court rejects Purdue Pharma opioid settlement
Click to see story on NY1The Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WFAA 8abcSupreme Court rejects controversial Purdue Pharma bankruptcy deal
Click to see story on OPBThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The Sun (Lowell)US Supreme Court rejects Sackler liability releases in Purdue bankruptcyFinancial Times
Click to see story on Financial TimesSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WGALSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WXIIThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Daily FreemanSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on NolaOpioid settlement toppled as SCOTUS rejects Sacklers’ immunity in 5-4 ruling
Click to see story on Ars TechnicaThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WLTXThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Chico Enterprise-RecordThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Florida PoliticsSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KSBWThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WKYCWest Virginia politicians react to Supreme Court blocking opioid bankruptcy settlement
Click to see story on WOWKThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WBIRSupreme Court rejects multibillion-dollar Purdue Pharma opioid settlement that shielded Sackler family
Click to see story on KTVZThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Krem2 NewsSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WJCLSupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KHBSThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Wood TVSupreme Court blocks Purdue Pharma bankruptcy plan
Click to see story on Roll CallSupreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Scripps NewsThe Supreme Court just blocked Purdue Pharma’s OxyCotin settlement that protects the Sackler family
Click to see story on QuartzThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Times-StandardThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Daily Local NewsThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Red Bluff Daily NewsThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The Pottstown MercuryThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WVNSThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Sentinel and EnterpriseThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Fort Smith/Fayetteville NewsThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The Times HeraldThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on NewsdayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on KYTXSupreme Court rejects a nationwide settlement with OxyContin maker Purdue Pharma that protected Sackler family members
Click to see story on ABC 6 NEWSSupreme Court rejects a nationwide opioid settlement – Minnesota Lawyer
Click to see story on Minnesota LawyerThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Shaw LocalThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The RepublicThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know
Click to see story on National PostUS Supreme Court rejects opioid settlement that shields Sackler family
Click to see story on Malay MailThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Boston HeraldSupreme Court rejects multibillion-dollar Purdue Pharma opioid settlement that shielded Sackler family
Click to see story on OC RegisterUS Supreme Court rejects Purdue Pharma’s $6 billion opioid settlement
Click to see story on Firstpost NewsSupreme Court rejects opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Just the NewsUS Supreme Court rules against SEC civil penalties without jury trials, dealing blow to Biden admin
Click to see story on Fox BusinessThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Daily PressSupreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Republican-AmericanThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Odessa AmericanSupreme Court Rejects Purdue Pharma Opioid Settlement Shielding Sackler Family From Lawsuits
Click to see story on The Daily CallerSupreme Court Rejects Purdue Pharma’s Multibillion-Dollar Opioid Settlement
Click to see story on The Epoch TimesSupreme Court Rejects Purdue Pharma Opioid Settlement in Major Blow to Sackler Family
Click to see story on National ReviewSupreme Court Rejects Purdue Pharma Opioid Settlement With Sackler Shield
Click to see story on Zero HedgeSupreme Court Rejects Purdue Pharma Opioid Settlement Shielding Sackler Family from Lawsuits
Click to see story on The Ohio StarSupreme Court Rejects Purdue Pharma Deal to Shield Sackler Family…
Click to see story on RevolverUntracked Bias
US Supreme Court rejects pharmacy bankruptcy plan, star of the opioid epidemic
Click to see story on GloboUS Supreme Court rejects nationwide opioid settlement with OxyContin maker
Click to see story on Shropshire StarAmerikaanse Hooggerechtshof blokkeert miljardenschikking rond opiaten
Click to see story on Het NieuwsbladThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on My Mother LodeThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Airdrie City ViewU.S. Supreme Court blocks Purdue Pharma plea deal
Click to see story on Quotidiano NazionaleThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Orillia MattersHealth: Rejection of the agreement protecting the Sackler family from future lawsuits over the opioid crisis.
Click to see story on Sud OuestThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Newmarket TodayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Midland TodayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Collingwood TodayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Thorold TodayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Elora Fergus TodayMass prescriptions – opioid lawsuits: US Supreme Court blocks billions settlement
Click to see story on Schweizer Radio und Fernsehen (SRF)…The Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma – ABC Columbia
Click to see story on ABC ColumbiaUS Supreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on WBRZThe Supreme Court Rejects A Nationwide Opioid Settlement With OxyContin Maker Purdue Pharma – WCCB Charlotte’s CW
Click to see story on WCCB CharlotteOpioid lawsuits: Supreme Court blocks billion-dollar settlement in US
Click to see story on watson.ch/Supreme Court rejects a nationwide settlement with OxyContin maker Purdue Pharma that protected Sackler family members
Click to see story on Chronicle OnlineThe legal odyssey for OxyContin maker Purdue Pharma and its owners is complex. Here’s what to know – The Morning Sun
Click to see story on Morning SunUS Supreme Court rejects opioid settlement that shields Sackler family
Click to see story on eNCASupreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on MOR-TVSupreme Court rejects opioid settlement – The Iola Register
Click to see story on Iola RegisterSupreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on The MissourianThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Nashoba Valley VoiceSupreme Court rejects controversial Purdue Pharma opioid settlement
Click to see story on TAG24Supreme Court blocks Purdue Pharma bankruptcy agreement on opioids – La Opinión
Click to see story on La OpinionThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Bradford TodayThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on Timmins TodayU.S. Supreme Court halts opioid settlement that shields Sackler family from lawsuits
Click to see story on dagsavisen.noSupreme Court rejects Purdue Pharma settlement
Click to see story on Brooklyn Daily EagleThe Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma
Click to see story on thealbertan.comSupreme Court Upends Purdue Pharma Opioid Settlement
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