Supreme Court Examines Purdue Pharma's Liability Shield for Sackler Family

The US Supreme Court heard arguments on Monday regarding whether the Sackler family, who controlled OxyContin maker Purdue Pharma, can use bankruptcy to shield their personal fortunes from future opioid-related liabilities. The case revolves around the power of federal bankruptcy courts to approve settlement agreements that absolve parties outside the bankruptcy of legal responsibility without the consent of litigants. The Sacklers agreed to pay $6 billion to opioid victims and governments in exchange for a release from claims, but some claimants wished to opt out of the settlement and retain their right to sue. Justices questioned whether bankruptcy laws were meant to deprive personal injury victims of their right to sue third parties not subject to the bankruptcy proceedings. A decision is expected this summer.