Supreme Court Blocks Purdue Pharma Bankruptcy Deal Over Opioids

The Supreme Court blocked the bankruptcy agreement of Purdue Pharma, a pharmaceutical laboratory that, Through the marketing of the painkiller OxyContin, it triggered what is considered an opioid crisis.

The agreement implied that the Sackler family, the majority owner of the company, would contribute nearly $6 billion dollars, renouncing ownership of the company, which would emerge from bankruptcy under a different name, Knoa Pharma.

In this sense, it was proposed that the enormous sum of money contributed would be allocated to the victims of the opioid epidemic and to combat it.

However, in a 5-4 decision, Supreme Court justices ruled that federal law does not allow the Sackler family to be immune from liability.

Judge Neil Gorsuch, who wrote the ruling, noted that current law authorizes the disclaimer.

“Someday, Congress may choose to add special rules for opioid-related bankruptcies to the bankruptcy code, as it has done for asbestos-related cases. Or you can choose not to.

Either way, if a political decision like that has to be made, it’s up to Congress to make it.

Despite the erroneous impression left by today’s dissent, our only proper task is to interpret and apply the law as we find it; and nothing in current law authorizes Sackler’s firing,” he wrote.

Although Nearly 95% of creditors voted to approve Purdue Pharma deal and immunize the Sacklers, the Supreme Court sided with the objections raised.

In fact, In December, Judge Elena Kagan had already questioned the company’s lawyer about the proposal to contribute money in exchange for obtaining immunity.

“Why should they obtain the exoneration that usually corresponds to a bankrupt person once they have put all their assets on the table, without having put all their assets on the table?”

It is estimated that, dHad the Purdue Pharma deal gone through, opioid victims would have been awarded between $3,500 and $48,000.

Keep reading:

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