The Supreme Court rejected a provision shielding the Sackler family in the Purdue Pharma settlement, impacting the distribution of funds to address the opioid epidemic.
Justice Gorsuch wrote the majority opinion, stating that the federal bankruptcy code does not allow liability shields for third parties in bankruptcy agreements.
Justice Kavanaugh dissented, noting the decision's impact on over 100,000 opioid victims and their families, criticizing the loss of the carefully negotiated settlement's benefits.
The U.S. Trustee Program argued against the immunity shield, deeming it an improper use of bankruptcy laws that distorts the system's purpose in addressing financial crises.
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