Supreme Court may push Sackler opioid case to Congress
Bankruptcy law is all about fresh starts. But just how much of a fresh start does the Sackler family deserve — without having to declare bankruptcy themselves?
The family’s former company, Purdue Pharma, has become synonymous with the US opioid epidemic and filed for bankruptcy in 2019. Plaintiffs harmed by that epidemic came to an agreement with the company that if the Sacklers paid $US6 billion ($9 billion) to victims and states, the family would be protected from further civil suits, even though they hadn’t personally declared bankruptcy. On Monday, the Department of Justice argued before the Supreme Court that the deal went too far.
If the judge approves the deal, the Sacklers, owners of Purdue Pharma, would pay as much as $US6 billion to help address the opioid damage.Credit: AP
At oral argument, Chief Justice John Roberts suggested that Congress would have to pass a law expressly authorising a bankruptcy court to offer protection from civil suits for defendants in cases like this one. Since the justices seemed to be split between liberals and conservatives, if Roberts can convince at least one other justice of his view, it is likely to determine the outcome of the case.
The factual background here belongs to the realm of mass tort litigation — the realm where private lawsuits can combine with........
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