The Supreme Court on Thursday temporarily blocked a nationwide settlement with OxyContin maker Purdue Pharma that would shield members of the Sackler family who own the company from civil lawsuits over the toll of opioids. The justices agreed to a request from the Biden administration to put the brakes on an agreement reached last year with state and local governments. In addition, the high court will hear arguments before the end of the year over whether the settlement can proceed, the AP reports. The deal would allow the company to emerge from bankruptcy as a different entity, with its profits used to fight the opioid epidemic. Members of the Sackler family would contribute up to $6 billion.
But a key component of the agreement would shield family members, who are not seeking bankruptcy protection as individuals, from lawsuits. The US Bankruptcy Trustee, represented by the Justice Department, opposes releasing the Sackler family from legal liability. The justices directed the parties to address whether bankruptcy law authorizes a blanket shield from lawsuits filed by all opioid victims. The 2nd US Circuit Court of Appeals had allowed the reorganization plan to proceed. Lawyers for Purdue and other parties to the agreement had urged the justices to stay out of the case, per the AP.
"We are disappointed that the US Trustee, despite having no concrete interest in the outcome of this process, has been able to single-handedly delay billions of dollars in value that should be put to use for victim compensation, opioid crisis abatement for communities across the country, and overdose rescue medicines," the company said in a statement Thursday. Ed Neiger, a lawyer representing individual victims of the opioid crisis who would be in line for a part of the settlement, said it was a disappointment that they would have to wait longer for compensation but praised the justices for agreeing to hear the case so soon. "They clearly see the urgency of the matter," he said.
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