Quantcast

LEGAL NEWSLINE

Thursday, September 19, 2024

Supreme Court rejects Purdue Pharma's reorganization plan

State AG
Webp 4377qro6q5trp0jraty0y7owyuqt

Attorney General Ellen Rosenblum | Twitter Website

The U.S. Supreme Court has rejected the reorganization plan for Purdue Pharma, the maker of OxyContin, which would have released members of the Sackler family from any future liability for claims against them. In a 5-4 vote, the Court ruled that, as part of a bankruptcy reorganization, the law does not allow the bankruptcy court to "discharge claims against a nondebtor without the consent of affected claimants." This means that the Sacklers' liability cannot be released without the consent of all parties to whom they might be liable.

Oregon Attorney General Ellen Rosenblum commented on this decision: “This is a win on policy. However, the $95 million that Oregon negotiated in prior settlements with Purdue Pharma and the Sacklers now hangs in the balance. We will actively participate in a future mediation to see if an agreement acceptable to all parties can be reached. If a settlement acceptable to Oregon is not reached, we intend to aggressively pursue our litigation against the Sacklers.”

ORGANIZATIONS IN THIS STORY

More News