The Supreme Court made a significant decision on Thursday by rejecting a controversial settlement related to the nation's opioid epidemic. The settlement, which aimed to allocate billions of dollars to treatment programs and victims, also included provisions to shield the Sackler family from future lawsuits. The Sackler family amassed their wealth through the sale of prescription opioids.
Justice Neil Gorsuch penned the opinion for a 5-4 majority, highlighting that the Sacklers were seeking relief beyond what a typical bankruptcy discharge allows. The court found that the proposed settlement did not align with bankruptcy laws.
Justice Kavanaugh dissented, expressing concern about the impact of the decision on thousands of opioid epidemic victims. He emphasized that victims would now be deprived of a substantial monetary recovery they had fought for over years of litigation.
The Sackler family had agreed to pay $6 billion to families and states as part of the settlement to dissolve Purdue Pharma, the manufacturer of OxyContin. In return, the family would have been protected from future civil liability claims.
Supporters of the bankruptcy argued that the lengthy process had reached a point where additional funds from the Sackler family were unlikely. However, the Justice Department opposed the settlement, stating that it was unfair to victims, especially potential future victims.
The case revolved around a company and its leaders who played a role in producing and promoting OxyContin during the early stages of the opioid crisis, which has had devastating effects on American lives.
While a federal appeals court had previously approved the deal, the Supreme Court intervened in August to review the case, ultimately leading to the rejection of the settlement.
