Supreme Court to Review Purdue Pharma Bankruptcy Settlement

The decision could have significant implications for future corporate bankruptcies, as the court examines whether the Sackler family can be released from civil liability.

• Purdue Pharma, the former manufacturer of prescription painkiller OxyContin, filed for bankruptcy in 2019 amid thousands of lawsuits related to the opioid crisis.
• Under the bankruptcy reorganization plan, the Sackler family, who controlled Purdue Pharma, would contribute up to $6 billion to the settlement in exchange for being released from civil liability.
• The liability release has been a major point of contention, although about 95 percent of creditors, including personal injury victims, states, and various governmental entities, voted to approve the plan.
• The U.S. Trustee Program, a component of the Justice Department, objected to the settlement, arguing that the bankruptcy court did not have the authority to release the Sackler family members from the claim.
• The Supreme Court is set to review the bankruptcy settlement, with experts suggesting the case could have significant impacts on other large corporate bankruptcies.

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