Supreme Court Divided on Purdue Pharma's Opioid Settlement and Sackler Family Immunity

The US Supreme Court is divided over whether to approve Purdue Pharma's bankruptcy settlement, which would grant immunity to the wealthy Sackler family, owners of OxyContin maker Purdue Pharma, from lawsuits related to their role in the deadly opioid epidemic. The court expressed concerns about shielding the Sacklers while also considering the potential harm to victims if the settlement is scuttled. The case raises questions about whether bankruptcy law allows for legal protections for non-bankrupt parties like the Sacklers. Some justices expressed skepticism towards the Biden administration's opposition to the settlement, while others were wary of extending protections to the Sacklers when they themselves were not debtors. The settlement, which would provide $10 billion in value to creditors, including victims of addiction, hospitals, and governments, was approved by a bankruptcy judge in 2021 but has faced challenges from the Biden administration and several states.