Purdue Pharma, the maker of OxyContin, is facing new legal challenges as the Supreme Court rejected its multibillion-dollar bankruptcy settlement, which would have shielded the Sackler family from civil liability for their role in the opioid crisis. The court struck down a provision in the deal that would have allowed the Sacklers to pay $6 billion to avoid further lawsuits. Now, the parties are back in court to figure out a new settlement or potentially face fresh litigation.
The New York bankruptcy judge overseeing Purdue’s bankruptcy proceedings will hold a hearing on Tuesday to determine whether to keep pending litigation against the Sackler family on hold during settlement negotiations. The committee of creditors representing entities suing the Sacklers, including Blue Cross and Blue Shield Association, CVS, and Native American tribes, has asked for permission to file a new lawsuit against the family if negotiations fail. They argue that litigation may be necessary if a new settlement isn’t reached quickly.
While lawyers for Purdue Pharma express hope for a settlement, they agree that the committee should be allowed to sue if negotiations fall through. A spokesperson for the Sackler family criticized the committee’s court filing, claiming it was full of errors and not in line with the goal of reaching a resolution that benefits communities and people in need. The court will need to decide on the next steps in the legal process, which could include allowing lawsuits to proceed if a new settlement is not reached.
The order keeping the lawsuits against the Sackler family on hold is set to expire on July 29 if the bankruptcy court does not extend it. The parties involved will need to work quickly to reach a new settlement if they hope to avoid prolonged litigation. The committee of creditors seeking damages from the Sacklers estimates that total damages in the various lawsuits against the family could exceed $1 trillion. The Sacklers’ net worth is valued at $5.2 billion, with only certain family members involved in the bankruptcy proceedings.
Members of the Sackler family have claimed they acted lawfully in their dealings with Purdue Pharma but have acknowledged the role OxyContin played in the opioid crisis. They expressed hope for a resolution that provides resources to combat the public health crisis but are prepared to defend themselves in litigation if necessary. Purdue Pharma filed for bankruptcy in 2019 amid allegations of aggressively marketing OxyContin, contributing to the opioid epidemic. The Sacklers have faced widespread condemnation and have faced lawsuits and backlash from cultural institutions.
The Supreme Court’s decision to reject Purdue Pharma’s settlement has thrown the future of the legal proceedings into uncertainty, as parties work to reach a new agreement or potentially face protracted litigation. The court will need to consider the best path forward to ensure justice for the victims of the opioid crisis while holding those responsible accountable. The outcome of the upcoming hearings and negotiations will have significant implications for the Sackler family, Purdue Pharma, and the entities seeking damages for their role in perpetuating the opioid epidemic.
