Purdue Pharma Settlement Restructured Following Supreme Court Ruling

Supreme Court Decision Reshapes Settlement Structure

After several years of complex litigation, the Purdue Pharma bankruptcy case has been significantly impacted by a landmark Supreme Court decision that reshaped bankruptcy law and mass tort settlements. U.S. Bankruptcy Judge Robert Drain1 had previously overseen the case in the Southern District of New York1.

Background: From Initial Filing to Supreme Court

Purdue Pharma, maker of the prescription painkiller OxyContin1, filed for bankruptcy in September 20191 amid thousands of lawsuits alleging the company fueled the opioid crisis through deceptive marketing practices. The company's initial settlement plan was approved in September 20211, but contained a highly controversial provision granting releases to the Sackler family members who were not themselves debtors in the bankruptcy.

The Sackler family had withdrawn approximately $11 billion3 from Purdue Pharma in the years leading up to the bankruptcy filing, raising concerns about asset protection strategies. The non-consensual releases would have shielded family members from future opioid-related lawsuits without requiring consent from victims.

Supreme Court Delivers Landmark Ruling

In June 2024, the U.S. Supreme Court issued a historic decision in Harrington v. Purdue Pharma2, ruling that the bankruptcy code does not permit releases protecting non-debtors without the consent of injured parties2. This decision is being hailed as one of the most important rulings in mass tort history, as it prevents wealthy individuals and entities from using bankruptcy courts to escape liability while retaining their assets.

Following the Supreme Court ruling, parties are working to restructure the settlement4.

Key Developments and Timeline

• September 2019: Purdue Pharma files for bankruptcy1
• September 2021: Initial settlement plan approved with controversial Sackler releases1
• June 2024: Supreme Court rejects non-consensual releases in landmark ruling2
• Ongoing: Parties negotiating revised settlement structure4

Impact on Opioid Crisis Victims

Any future settlement will provide compensation to individuals, families, and communities devastated by the opioid crisis. Funds would typically be distributed to:

• Individual victims and families affected by opioid addiction
• State and local governments for opioid abatement programs
• Treatment and prevention programs
• Healthcare systems overwhelmed by the crisis

What This Means for Potential Claimants

If you or a loved one suffered harm from OxyContin or other Purdue Pharma opioids, you may be eligible for compensation under a future settlement. The Supreme Court's ruling2 means that any new settlement structure will need to be renegotiated.

It's important to note that this case specifically addresses claims against Purdue Pharma, but other opioid manufacturers and distributors face separate litigation that may provide additional avenues for compensation.

Next Steps for Affected Individuals

If you believe you have a claim related to Purdue Pharma's opioids, it's crucial to stay informed about developments in the case and consult with legal counsel to protect your rights.

Contact an experienced mass tort attorney today for a free case evaluation to determine if you may qualify for compensation.

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References:

1 U.S. Bankruptcy Court Southern District of New York - Purdue Pharma Case Records - Bankruptcy filing information, judge assignments, and settlement history

2 Supreme Court of the United States - Harrington v. Purdue Pharma Decision - June 2024 ruling on third-party releases in bankruptcy

3 Congressional Testimony and Court Documents - Sackler Family Financial Transfers - Documentation of family withdrawals from company prior to bankruptcy

4 Legal News Sources - Post-Supreme Court Settlement Negotiations - Coverage of ongoing settlement negotiations following Supreme Court ruling