In a loss for the Sackler family, the justices ruled that a bankruptcy judge did not have the authority to let its members evade facing future lawsuits.
WASHINGTON — The Supreme Court on Thursday blew up the massive bankruptcy reorganization of opioid maker Purdue Pharma, finding that the settlement inappropriately included legal protections for the Sackler family, meaning that billions of dollars secured for victims is now threatened.
As part of the deal, the family, which controlled the company, had agreed to pay $6 billion that could be used to settle opioid-related claims, but only in return for a complete release from any liability in future cases.
As a result of the ruling, “opioid victims are now deprived of the substantial monetary recovery that they long fought for and finally secured after years of litigation,” he added.
The settlement, including assets held by Purdue, would be worth significantly more, with the reorganized company set to dedicate itself to tackling the impact of opioid abuse.
Purdue criticized Harrington’s role, saying that groups representing thousands of plaintiffs have signed on to the settlement, which could not have happened without the Sackler family contribution.
In a brief filed on behalf of the relatives of Mortimer Sackler, most of whom are based overseas, lawyers warned of “significant litigation costs and risks” in seeking to enforce any foreign court judgments against the family if the settlement were thrown out.
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WASHINGTON — The Supreme Court on Thursday blew up the massive bankruptcy reorganization of opioid maker Purdue Pharma, finding that the settlement inappropriately included legal protections for the Sackler family, meaning that billions of dollars secured for victims is now threatened.
As part of the deal, the family, which controlled the company, had agreed to pay $6 billion that could be used to settle opioid-related claims, but only in return for a complete release from any liability in future cases.
As a result of the ruling, “opioid victims are now deprived of the substantial monetary recovery that they long fought for and finally secured after years of litigation,” he added.
The settlement, including assets held by Purdue, would be worth significantly more, with the reorganized company set to dedicate itself to tackling the impact of opioid abuse.
Purdue criticized Harrington’s role, saying that groups representing thousands of plaintiffs have signed on to the settlement, which could not have happened without the Sackler family contribution.
In a brief filed on behalf of the relatives of Mortimer Sackler, most of whom are based overseas, lawyers warned of “significant litigation costs and risks” in seeking to enforce any foreign court judgments against the family if the settlement were thrown out.
The original article contains 765 words, the summary contains 207 words. Saved 73%. I’m a bot and I’m open source!