While Victims In the Purdue Pharma Case Wait…
May 31, 2024
As we await the Supreme Court’s ruling on the Purdue Pharma bankruptcy case that has been pending before the Court for 6 months, the anticipation is certain. This decision holds significant implications for the future of the five-year long bankruptcy case that had led to a more than $6 billion settlement to be used to pay over 120,000 claimants while providing for much needed abatement programs in thousands of communities in all 50 states.
Purdue Pharma, the maker of OxyContin and its shareholder founders, the Sackler family, have been at the center of the opioid crisis for the past 20 years. But for the appeal to the Supreme Court by the US Trustee, the settlement would have been funded and implemented by last year. However, now all stakeholders must continue to wait for the Court to act.
The victims of Purdue Pharma’s actions represent a broad and deeply affected community, grappling with the devastating consequences of the opioid crisis. These individuals and families have experienced immense pain and loss of loved ones, families destroyed and untold financial ruin, stemming from the widespread availability and aggressive marketing of OxyContin, a potently addictive opioid painkiller.
The case before the Supreme Court could set a precedent for how much flexibility bankruptcy courts will have to handle corporate liability in cases involving massive public health impacts. Purdue’s proposed bankruptcy settlement plan, which includes significant financial contributions from the Sackler family, who owned the company but who are not themselves in bankruptcy, has been contentious. Critics argue that the plan allows the Sacklers to escape full accountability by shielding them from future lawsuits in return for their $6 billion contribution to the settlement
The Court will rule in the next 5 weeks. Until then the fate of Purdue Pharma, the Sackler family and victims of their corporate greed and malfeasance hangs in the balance. Depending on how the Court rules either the opioid litigation will finally be resolved or there will be many more years of litigation.
