Supreme Court to hear argument over opioid settlement deal

The U.S. Supreme Court on Thursday put a hold on Purdue Pharma’s bankruptcy deal, agreeing to hear case arguments in December. The agreement would shield the Sackler family, owner of the drug manufacturer, from civil claims related to the opioid crisis. Under the agreement, the family would receive immunity in exchange for paying up to $6 billion to settle thousands of lawsuits filed by states, hospitals, and individuals. Purdue Pharma filed for bankruptcy in 2019 after lawsuits were filed against the company for its marketing of the addictive painkiller OxyContin. In a recent statement to the media, Purdue Pharma said it was “confident in the legality” of its plan to reorganize, and was disappointed the payment had been delayed.

Why is the agreement being challenged? A bankruptcy judge in 2021 approved the settlement. The Justice Department argued the bankruptcy court does not have the authority to grant individuals legal immunity from civil claims. A U.S. appeals court in May ruled in favor of the settlement plan.

Dig deeper: Read Emily Belz’s report in WORLD Magazine on record-breaking drug overdose deaths during the pandemic.