The China Mail - Divided US high court hears challenge to $6bn Purdue opioid settlement

USD -
AED 3.672504
AFN 64.000177
ALL 82.446914
AMD 367.890259
ANG 1.790403
AOA 917.500536
ARS 1481.230498
AUD 1.451948
AWG 1.8
AZN 1.701068
BAM 1.715719
BBD 2.014659
BDT 123.237259
BGN 1.69088
BHD 0.377133
BIF 2976.647894
BMD 1
BND 1.294833
BOB 6.927015
BRL 5.177697
BSD 1.000237
BTN 94.653762
BWP 13.556631
BYN 2.932324
BYR 19600
BZD 2.011641
CAD 1.42352
CDF 2274.999786
CHF 0.809595
CLF 0.023405
CLP 921.119992
CNY 6.79395
CNH 6.794015
COP 3455.43
CRC 456.074635
CUC 1
CUP 26.5
CVE 96.734291
CZK 21.28865
DJF 178.123232
DKK 6.560215
DOP 59.627253
DZD 133.180272
EGP 49.242802
ERN 15
ETB 160.107467
EUR 0.87769
FJD 2.24775
FKP 0.75464
GBP 0.756325
GEL 2.640097
GGP 0.75464
GHS 11.325109
GIP 0.75464
GMD 73.500955
GNF 8768.31301
GTQ 7.631137
GYD 209.231633
HKD 7.84195
HNL 26.765154
HRK 6.615197
HTG 130.781681
HUF 312.73498
IDR 17903
ILS 2.97995
IMP 0.75464
INR 94.642008
IQD 1310.36086
IRR 1376000.000128
ISK 126.379895
JEP 0.75464
JMD 157.597396
JOD 0.709011
JPY 162.441504
KES 129.45015
KGS 87.449981
KHR 4025.844712
KMF 431.999758
KPW 900.00035
KRW 1550.829995
KWD 0.30975
KYD 0.833593
KZT 479.31644
LAK 22434.12886
LBP 89573.772793
LKR 336.095235
LRD 181.582861
LSL 16.36882
LTL 2.952739
LVL 0.60489
LYD 6.42603
MAD 9.401556
MDL 17.67459
MGA 4243.298842
MKD 54.123225
MMK 2099.487458
MNT 3582.059186
MOP 8.08008
MRU 39.968069
MUR 47.189819
MVR 15.45981
MWK 1734.473214
MXN 17.46815
MYR 4.084021
MZN 63.84992
NAD 16.369466
NGN 1381.919505
NIO 36.809762
NOK 9.92705
NPR 151.417455
NZD 1.76719
OMR 0.384504
PAB 1.000268
PEN 3.418588
PGK 4.393387
PHP 61.405503
PKR 278.14144
PLN 3.77006
PYG 6083.016418
QAR 3.656302
RON 4.602201
RSD 102.969983
RUB 78.156144
RWF 1466.200538
SAR 3.758263
SBD 8.065041
SCR 13.756228
SDG 600.500123
SEK 9.736502
SGD 1.294905
SHP 0.746601
SLE 24.800038
SLL 20969.503664
SOS 571.631598
SRD 37.494501
STD 20697.981008
STN 21.492548
SVC 8.752522
SYP 110.532098
SZL 16.366651
THB 33.232502
TJS 9.242505
TMT 3.51
TND 2.964393
TOP 2.40776
TRY 46.659799
TTD 6.789103
TWD 31.831993
TZS 2625.003026
UAH 44.826936
UGX 3666.127143
UYU 40.153526
UZS 12007.438858
VES 622.24352
VND 26315
VUV 119.95305
WST 2.78094
XAF 575.458928
XAG 0.017427
XAU 0.000251
XCD 2.70255
XCG 1.802639
XDR 0.716236
XOF 575.45388
XPF 104.621836
YER 238.602932
ZAR 16.372697
ZMK 9001.201353
ZMW 18.029889
ZWL 321.999592
  • RYCEF

    0.2900

    18.68

    +1.55%

  • RBGPF

    0.6100

    65.61

    +0.93%

  • RELX

    0.1300

    31.42

    +0.41%

  • GSK

    -0.3450

    52.465

    -0.66%

  • BCE

    -0.3530

    21.907

    -1.61%

  • AZN

    -3.6850

    187.265

    -1.97%

  • CMSC

    0.0622

    21.755

    +0.29%

  • VOD

    -0.4700

    13.22

    -3.56%

  • RIO

    0.1500

    94.44

    +0.16%

  • BTI

    -0.6000

    62.14

    -0.97%

  • BCC

    -1.2700

    77.99

    -1.63%

  • JRI

    0.0800

    12.94

    +0.62%

  • CMSD

    0.0400

    21.94

    +0.18%

  • NGG

    -0.5350

    83.225

    -0.64%

  • BP

    -0.1350

    37.215

    -0.36%

Divided US high court hears challenge to $6bn Purdue opioid settlement
Divided US high court hears challenge to $6bn Purdue opioid settlement / Photo: © GETTY IMAGES/AFP

Divided US high court hears challenge to $6bn Purdue opioid settlement

The US Supreme Court appeared divided on Monday as it heard a challenge to Purdue Pharma's $6 billion opioids settlement immunizing the Sackler family that controlled the drugmaker from future litigation.

Text size:

The Justice Department is arguing that the Sacklers, who earned tens of billions of dollars flooding the country with highly addictive opioids, should not gain sweeping legal protection in the controversial deal.

Last year's agreement, which came after years of negotiations involving officials from all 50 US states, set aside $6 billion from the 2019 bankruptcy of Purdue, which made prescription painkillers like OxyContin, for victims of the opioid epidemic.

The settlement, which has been put on hold by the Supreme Court, gave the families of Raymond Sackler and Mortimer Sackler protection from all future civil claims, effectively protecting their other assets from opioid-related lawsuits.

The Justice Department, acting as a bankruptcy watchdog body known as the US Trustee, accuses the Sacklers of withdrawing $11 billion from Purdue Pharma over the decade before the company filed for bankruptcy protection.

Deputy Solicitor General Curtis Gannon outlined the Biden administration's objections to the deal before the nine justices on the nation's highest court.

"It permits the Sacklers to decide how much they're going to contribute," Gannon said. "It grants the Sacklers the functional equivalent of a discharge."

Justice Elena Kagan said this would appear to go against a "fundamental bargain in bankruptcy law, which is you get a discharge when you put all your assets on the table to be divided up among your creditors.

"And I think everybody thinks that the Sacklers didn't come anywhere close to doing that."

At the same time, the liberal justice went on to note there was vast support for the deal even "among people who think that the Sacklers are pretty much the worst people on Earth."

"It seems as though the federal government is standing in the way against the huge, huge, huge majority of claimants who have decided that if this provision goes under, they're going to end up with nothing," she said.

Purdue's bankruptcy filing resulted directly from the massive, country-wide litigation against it and other major drugmakers and pharmacy companies for knowingly fomenting the addiction crisis.

Under the March 2022 settlement, the Sacklers were "absolutely, unconditionally, irrevocably, fully, finally, forever and permanently" released from further legal liability.

- 'Left with nothing' -

Justice Brett Kavanaugh, a conservative, appeared skeptical about throwing out a settlement that had been approved by more than 95 percent of the claimants who voted for the plan and of a type that he said bankruptcy courts have been approving for 30 years.

"I think what the opioid victims and their families are saying is you, the federal government, with no stake in this at all, are coming in and telling the families 'No, we're not going to give you prompt payment,'" Kavanaugh said. "In exchange, really, for this somewhat theoretical idea that they'll be able to recover money down the road from the Sacklers themselves."

Gregory Garre, representing Purdue Pharma, said rejecting the settlement could lead to years of litigation and leave victims with no compensation at all.

"If the Trustee succeeds here, the billions of dollars that the plan allocates for opioid abatement and compensation will evaporate, creditors and victims will be left with nothing, and lives literally will be lost," Garre said.

Justice Amy Coney Barrett raised questions about what effect a ruling in the case could have for other mass tort cases involving, for example, Johnson and Johnson, whose talcum powder is alleged to have caused cancer, or abuse claims against the Catholic Church and Boy Scouts of America.

The opioid epidemic has caused more than 500,000 overdose deaths in the United States over two decades, authorities say.

Purdue and other opioid makers were accused of encouraging free-wheeling prescription of their products through aggressive marketing tactics while hiding how addictive the drugs are.

Facing an avalanche of litigation, in 2021 Purdue pled guilty to three criminal charges over its marketing of OxyContin.

The Supreme Court is expected to rule in the case before June of next year.

H.Au--ThChM