Fake pill bottles with messages about OxyContin maker Purdue Pharma were displayed during a protest outside the courthouse where the bankruptcy of the company was taking place in White Plains, N.Y. in 2021.
Seth Wenig/AP
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Seth Wenig/AP
Fake pill bottles with messages about OxyContin maker Purdue Pharma were displayed during a protest outside the courthouse where the bankruptcy of the company was taking place in White Plains, N.Y. in 2021.
Seth Wenig/AP
The U.S. Supreme Court has agreed to review a controversial bankruptcy case involving Purdue Pharma, the maker of Oxycontin, and members of the Sackler family who own the company.
Justices on Thursday temporarily blocked implementation of the $6 billion deal while the appeal is heard. Arguments in the case have been scheduled for December.
A federal bankruptcy court in New York first approved the complex settlement in 2021. Wealthy members of the Sackler family were included even though they’re not bankrupt.
In exchange for a $6 billion dollar payment from the Sacklers, the arrangement would block future opioid lawsuits targeting them.
In a brief statement today, the Supreme Court ordered attorneys for the U.S. Trustee Division of the DOJ, Purdue Pharma and the Sacklers to prepare arguments on one question:
Does US bankruptcy code allow courts to approve deals, as part of a Chapter 11 filings, that extinguish claims against third parties that aren’t bankrupt?
Legal experts say this case could set precedents affecting other controversial bankruptcy deals involving wealthy companies and individuals.