- The Supreme Court decisively rejected Purdue Pharma’s bankruptcy reorganization plan that aimed to shield the Sackler family from lawsuits related to the opioid crisis. The 5-4 decision sided with arguments that the Sacklers abused the bankruptcy process to evade legal liabilities, stating that they sought special treatment beyond what bankruptcy law allows. This ruling means billions of dollars earmarked for victims of opioid addiction will not materialize, but it establishes a precedent against using bankruptcy to immunize non-debtors from lawsuits. The dissent, voiced by Justice Brett Kavanaugh, argued that such plans are within bankruptcy courts’ authority to provide equitable solutions for mass-tort victims. This split decision underscores broader implications for future bankruptcy cases involving attempts to shield parties from legal consequences through bankruptcy proceedings. (Article here)
July 16, 2024
Opioid/Substance Use Disorders | Tea Leaves