Supreme Court Delays Purdue Pharma's $6B Opioid Settlement, Reviews Appeal

The Supreme Court has temporarily blocked a $6 billion bankruptcy settlement by Purdue Pharma, the maker of OxyContin, that aimed to protect the Sackler family owners from civil lawsuits related to opioid abuse. The court has also agreed to hear a challenge to the settlement by Purdue. The order directs parties to file briefs on whether federal courts have the authority to approve a reorganization under Chapter 11 of the U.S. Bankruptcy Code that includes a release of claims held by nondebtors against nondebtor third parties without their consent. The case will be argued by the end of the year, and the stay on the settlement will be lifted once the court rules.