High Court Rejects Purdue Pharma Opioid Settlement that Shields Sacklers

WASHINGTON, D.C. — A majority of the U.S. Supreme Court has ruled that the U.S. Bankruptcy Code does not authorize a liability shield for third parties in bankruptcy settlements, ruling that the Sackler family cannot return $4.3 billion to the estate of Purdue Pharma in exchange for a release of liability for opioid lawsuits.

In a 5-to-4 opinion written by Justice Neil M. Gorsuch, the majority explained that because the Sacklers have not filed for bankruptcy or placed all their assets on the table for distribution to creditors, they cannot obtain a discharge of their debts. No provision of the …