Supreme Court Halts Purdue Pharma’s Bankruptcy Plan Worth Billions

The Supreme Court has ordered a temporary halt on the proposed bankruptcy plan for Purdue Pharma, which would distribute billions of dollars toward resolving the opioid crisis in the USA—Purdue Pharma has said that under the negotiated deal, the Sacklers would pay up to $6 billion over nearly two decades to help alleviate the problem; which could ultimately be worth more than $10 billion. The halt comes after the Justice Department challenged the plan’s provision to shield the Sackler family, which owns the company, from future litigation. The department argues that the decision to shield the Sacklers constitutes an abuse of the bankruptcy system. Therefore, the Sacklers have agreed to contribute up to $6 billion over 18 years as part of the bankruptcy plan, but opposition to their exemption from future lawsuits persists. The halt means a delay for victims and governments awaiting the payout. Discussions will proceed in December. To read more, click here. [Source: The Washington Post, August 11th, 2023]