Attorney General William Tong issued a statement regarding the U.S. Supreme Court's decision to overturn the Purdue Pharma bankruptcy order.
“This decision is a definitive rebuke of the Sackler family’s abuse of the bankruptcy code. The U.S. Supreme Court got it right—billionaire wrongdoers should not be allowed to shield blood money in bankruptcy court. In practical terms, this sends us back to bankruptcy court, where I expect we will re-enter mediation. Connecticut led the way in extracting the initial $6 billion settlement from Purdue and the Sacklers, and we will be front and center again in any new negotiations. From day one, this fight has been about justice and accountability for the hundreds of thousands of victims of Purdue’s misconduct and the Sackler family’s greed. We will continue to insist that any settlement funds be used to save lives through opioid treatment and prevention, including direct relief to victims and their families,” said Attorney General Tong.
Connecticut first filed suit against Purdue and individual members of the Sackler family in 2018, alleging that the company and family peddled falsehoods to push patients toward its opioids, reaping massive profits while opioid addiction skyrocketed. Connecticut expanded that suit in 2019 to add additional defendants and allegations, including the fraudulent transfer of hundreds of millions of dollars from Purdue Pharma to shield their wealth from accountability.
Purdue Pharma filed for bankruptcy in September 2019. In 2021, the bankruptcy court approved a Purdue bankruptcy plan that granted a lifetime legal shield to the Sackler family, blocking states like Connecticut from pursuing claims against them. The plan required the Sackler family to pay $4.3 billion over nine years to states, municipalities, and plaintiffs who sued the company. California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia objected and appealed. The United States Trustee also appealed.
In December 2021, the U.S. District Court vacated the Purdue bankruptcy order after agreeing with non-consenting states that it lacked authority to force states to release their claims against the Sackler family.
The District Court decision enabled Attorney General Tong and eight other dissenting states to negotiate a new settlement requiring Purdue and the Sacklers to pay $6 billion to victims and states while exiting the global opioid business permanently.
As part of that settlement agreement reached before further appeals were pursued at higher courts such as Second Circuit or U.S Supreme Court – Connecticut did not participate directly therein but instead testified before House Judiciary Subcommittee advocating reforms prohibiting exploitative loopholes within existing Bankruptcy Code frameworks aimed towards ensuring enhanced accountability measures remain enforced moving forward.