Supreme Court Blocks Purdue Pharma Settlement

The U.S. Supreme Court has blocked Purdue Pharma's bankruptcy settlement in a 5-4 decision, rejecting the provision that would have granted legal immunity to the Sackler family in exchange for a $6 billion contribution to settle opioid crisis-related lawsuits. Justice Neil Gorsuch, writing for the majority, stated that bankruptcy law does not permit such protections for non-debtors. The ruling is a significant victory for the Biden administration and could lead to prolonged legal battles and renegotiations. Critics of the decision, including dissenting Justice Brett Kavanaugh, argue it delays compensation for thousands of opioid victims. The ruling may also have broader implications for other bankruptcy cases involving non-debtor releases, such as those filed by Catholic dioceses facing sex abuse claims.