Supreme Court Blocks , Purdue Pharma Bankruptcy Deal.
The Supreme Court paused the $6 billion opioid settlement on Aug.
10, CNN reports.
According to the Biden administration, the "unprecedented" deal would grant the Sackler family, Purdue Pharma founders, protection against civil opioid-related claims. .
The Supreme Court will hear case arguments in December.
The OxyContin manufacturer's case followed the reorganization in bankruptcy stemming from claims of its role in the opioid crisis.
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CNN reports that the Sackler family withdrew billions of dollars from Purdue Pharma prior to bankruptcy filings.
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The family will reportedly provide up to $6 billion toward the company's reorganization fund, provided that they are released from civil liability.
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We are confident in the legality of our nearly universally supported Plan of Reorganization, and optimistic that the Supreme Court will agree, Purdue Pharma, via statement.
Solicitor General Elizabeth Prelogar argues that granting the Sacklers immunity goes against bankruptcy code and represents an "abuse of the bankruptcy system.".
The plan’s release ‘absolutely, unconditionally, irrevocably, fully, finally, forever and permanently releases’ the Sacklers from every conceivable type of opioid-related civil claim – , Solicitor General Elizabeth Prelogar, via statement.
.... even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities, Solicitor General Elizabeth Prelogar, via statement.
However, Ohio Attorney General Dave Yost said he's disappointed that the settlement was paused.
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We wanted the settlement to move forward.
It’s so important to get this money flowing.
It’s been – since 2019 – that this bankruptcy proceeding has been going on.
, Ohio Attorney General Dave Yost, CNN’s Jake Tapper on 'The Lead'.
I guess the best thing I can say about today’s decision to hear the case is at least they set it for December, Ohio Attorney General Dave Yost, CNN’s Jake Tapper on 'The Lead'
