Overview

• 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.