The Supreme Court on Thursday agreed to consider the Biden administration’s challenge to a bankruptcy settlement for Purdue Pharma, pausing the $6 billion deal over the administration’s concerns about a provision that would shield the members of the Sackler family, who own the company, from future opioid-related claims.
The court slated arguments in the case for December, leading to a decision likely early next year. The stay will remain in place until the decision is handed down.
Purdue, the maker of OxyContin, filed for bankruptcy in 2019 in an attempt to settle about 3,000 lawsuits from states, tribes and other local entities related to its aggressive opioid marketing. Lawsuits argued that the marketing contributed to the opioid crisis that has killed nearly 500,000 people over the past 20 years.
The settlement plan would shield members of the Sackler family and a long list of associates from future opioid lawsuits.
The U.S. Court of Appeals for the 2nd Circuit approved the settlement plan in May.
The Biden Justice Department argued that the bankruptcy court did not have the authority to release the Sackler family members from the claims.
