Posted on Jun 27, 2024
Supreme Court rejects controversial Purdue Pharma bankruptcy deal
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The U.S. Supreme Court on Thursday invalidated a controversial bankruptcy deal involving Purdue Pharma, maker of the highly addictive painkiller Oxycontin, and members of the Sackler family who owned the scandal-plagued drug firm.
By a vote of 5 to 4 the justices threw out the bankruptcy settlement, which has been valued at between $6 and $10 billion.
Writing for the court majority, Justice Neil Gorsuch said that U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy.
By a vote of 5 to 4 the justices threw out the bankruptcy settlement, which has been valued at between $6 and $10 billion.
Writing for the court majority, Justice Neil Gorsuch said that U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy.
Supreme Court rejects controversial Purdue Pharma bankruptcy deal
Posted from npr.org
Bankruptcy
Lawsuit
Drugs
Pharmaceuticals
Posted 6 d ago
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Opioids III: The Sacklers: Last Week Tonight with John Oliver (HBO)
John Oliver explains how the Sackler family has been handling lawsuits related to the opioid crisis, how hard they’ve been fighting to defend their name, and...
Some criticized the bankruptcy deal for being overly lenient to the Sackler family. It allegedly called for relatively minor payment and absolution of any further responsibility.
https://youtu.be/uaCaIhfETsM?si=Eo5Xv8TenmGO2TEQ
https://youtu.be/uaCaIhfETsM?si=Eo5Xv8TenmGO2TEQ
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PO1 William "Chip" Nagel
Writing for the court majority, Justice Neil Gorsuch said U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy. "The bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seek to discharge claims against a non-debtor without the consent of affected claimants," he wrote.
Writing for the court majority, Justice Neil Gorsuch said U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy. "The bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seek to discharge claims against a non-debtor without the consent of affected claimants," he wrote.
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