California Attorney General Rob Bonta issued a statement following the U.S. Supreme Court's decision to strike down Purdue Pharma L.P.'s bankruptcy plan in Harrington v. Purdue Pharma. The ruling found that nonconsensual third-party releases are not authorized under the Bankruptcy Code. Purdue’s plan had granted the Sackler family, owners of Purdue, immunity in exchange for up to $6 billion for claims related to OxyContin's misleading marketing and their role in the opioid crisis.
The decision reverses a prior ruling by the U.S. Court of Appeals for the Second Circuit, which had provided broad protection from liability to the Sacklers.
“For years, the Sackler family prioritized their own interests and profits over people, fueling the opioid epidemic that ravaged our communities and led to the loss of countless lives across our country,” said Attorney General Bonta. “No amount of money will ever undo the devastation that the Sacklers and Purdue Pharma have caused in perpetuating this crisis, but today’s decision will allow those that have suffered at the hands of the Sacklers to hold them accountable for their greed and willful misconduct."
Attorney General Bonta reiterated his commitment to fighting the opioid crisis, noting ongoing efforts by his office to secure funding for treatment and prevention strategies. In September, he filed a letter with the U.S. Supreme Court expressing his view that nonconsensual third-party releases were unlawful.
The California Department of Justice has secured over $48 billion through nationwide settlements, including up to $4.25 billion for California.