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Supreme Court Weighs Fate of Purdue Pharma’s Bankruptcy Plan, Which Could Shield Sackler Family from Liability for Opioid Crisis

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Key takeaways:

  • The Sackler family has agreed to contribute $6 billion to abatement of the opioid crisis in exchange for a legal shield.
  • The Biden administration has objected to the plan, arguing that it gives the Sacklers too much protection from future lawsuits.
  • The Supreme Court’s decision could have far-reaching implications for the opioid epidemic, as well as for the Sackler family.

The Supreme Court heard arguments on Monday in a case that could determine the fate of Purdue Pharma’s bankruptcy plan, which includes a provision that protects the Sackler family from liability for the opioid epidemic.

The Sackler family, which owns Purdue Pharma, has agreed to contribute $6 billion to abatement of the opioid crisis in exchange for the legal shield. The Biden administration has objected to the plan, arguing that it gives the Sacklers too much protection from future lawsuits.

During the oral argument, justices expressed skepticism that a bankruptcy court had legal authority to release the Sacklers from potential legal claims. They questioned whether the Sacklers should be allowed to benefit from the bankruptcy plan, given their role in creating the opioid crisis.

The Supreme Court’s decision could have far-reaching implications for the opioid epidemic, as well as for the Sackler family. If the court upholds the bankruptcy plan, the Sacklers will be protected from future civil lawsuits. If the court rejects the plan, the Sacklers could face a barrage of civil lawsuits and be held liable for damages.

The Supreme Court is expected to issue its decision in the coming months. In the meantime, the opioid crisis continues to ravage communities across the country, and the Sackler family remains at the center of the debate.

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