Supreme Court Pauses Opioid Settlement With Sackler Family

The U.S. Supreme Court put the bankruptcy proceedings of opioid maker Purdue Pharma on hold Thursday.

The Biden administration had made an emergency request to block the proceedings over a provision that protected the Sackler family, which controlled the company, from liability for lawsuits over their role in the U.S. opioid epidemic. 

The court also agreed to hear the government’s appeal when it reconvenes for the December 2023 oral arguments session. 

The bankruptcy plan directed the Sacklers to depart from the Stamford, Connecticut, company they have led since its inception. Purdue would then transform into a new entity, Knoa, with any profits allocated to fight the opioid epidemic. 

The Sacklers also pledged to donate $5.5-$6 billion to combat the epidemic, with at least $750 million going to individual victims and survivors. 

In papers filed with the court, the government called the protections afforded to the Sacklers of "exceptional and unprecedented breadth."

"The plan’s release “absolutely, unconditionally, irrevocably, fully, finally, forever[,] and permanently release[s]” the Sacklers from every conceivable type of opioid-related civil claim, even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities," U.S. Solicitor General Elizabeth Prelogar argued.

Purdue spokesperson Michele Sharp told USA Today that Purdue is confident in the legality of its reorganization plan "and optimistic that the Supreme Court will agree."