Supreme Court blocks billion-euro settlement
The United States Supreme Court has blocked a billion-dollar settlement over mass prescribing of painkillers. The Supreme Court ruled on Thursday that a contentious aspect of Purdue Pharma's bankruptcy deal in the US is not valid. This aspect would have bound the Sackler family, the company's long-term owners, to a payment of up to six billion US dollars (approximately 5.6 billion Euros), while also releasing them from civil liability.
The Sacklers neither filed for bankruptcy themselves nor agreed to put their entire fortune on the table for Opioid victims, according to Justice Neil Gorsuch in the ruling. However, they are trying to dismiss a broad range of current and future claims against them, including those for fraud and intentional bodily harm.
The Sacklers are accused of marketing Oxycontin, an opioid painkiller, under the guise of downplaying addiction risks with ruthless and aggressive methods. The billion-dollar settlement, negotiated with various state governments and individual plaintiffs, is intended to benefit Opioid victims and their families, as well as the fight against the Opioid epidemic in the US. The Sacklers made the billion-dollar payment and relinquished control as part of the deal, but were protected from potential future lawsuits in return. This aspect was the focus of the Supreme Court's decision.
The decision was split: Four justices and justices disagreed with their colleagues. The dissenting opinion by Justice Brett Kavanaugh called the ruling "devastating" for Opioid victims and their families. The future of the settlement is unclear.
Opioids are partly synthetic medications with pain-relieving properties. However, they pose addiction risks and high potential for abuse. In the US, the Opioid epidemic, according to authorities, has led to hundreds of thousands of deaths from overdoses in recent years.
The Supreme Court's decision to invalidate a validated part of Purdue Pharma's bankruptcy deal means the Sacklers are no longer obligated to pay the billion-dollar compensation in the Opioid lawsuits. Despite not participating in the bankruptcy filing or agreeing to relinquish their entire fortune, the Sacklers are still facing numerous Opioid lawsuits against them for fraud and intentional bodily harm.
