The U.S. Supreme Court threw a wrench into efforts to resolve the national opioid crisis on Thursday, rejecting a proposed settlement with OxyContin maker Purdue Pharma.
The closely watched 5-4 decision leaves open the question of how billions of dollars in potential resources for addiction treatment and prevention will be distributed, and exposes the Sackler family, who own Purdue, to continued lawsuits.
The proposed settlement, hammered out over years with state and local governments and victims’ families, would have provided up to $6 billion from the Sacklers while shielding them from future lawsuits. Purdue would have emerged from bankruptcy as a new entity dedicated to addiction treatment.
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However, the high court, in a majority opinion authored by Justice Sonia Sotomayor, found that the bankruptcy court overstepped its authority by granting the Sacklers immunity from lawsuits. The decision highlights the ongoing debate over the Sackler family’s role in the opioid crisis, with many accusing them of aggressive marketing tactics that fueled addiction.
Opponents of the settlement argued that it did not hold the Sacklers accountable for their actions. They also expressed concern that the settlement would not generate enough resources to address the ongoing crisis.
The ramifications of the Supreme Court’s decision are far-reaching. Purdue Pharma remains in bankruptcy, and thousands of lawsuits against the company and the Sacklers can now proceed. This could lead to a lengthy legal battle, delaying the distribution of funds for addiction treatment. However, it also opens the possibility of a larger settlement that could provide more resources for those struggling with addiction.
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The impact on the Sackler family is also unclear. While they have lost their shield from lawsuits, they could potentially negotiate more favorable settlements outside of bankruptcy court.
The future course of the opioid crisis remains uncertain. The Supreme Court’s decision is a setback, but it may ultimately lead to a more comprehensive resolution that holds Purdue Pharma and the Sacklers accountable while providing much-needed resources to combat addiction.
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