The Background
On Monday, the Supreme Court heard arguments in the complex bankruptcy case of Purdue Pharma, the pharmaceutical company behind OxyContin, and its owners, the Sackler family. The Sacklers have been widely criticized for their deceptive marketing and distribution of opioids, which has contributed to the ongoing opioid crisis in the United States.
The Proposal
In exchange for relinquishing ownership of Purdue Pharma and paying up to $6 billion over the next 18 years to address the crisis, the Sacklers are seeking protection from any future civil lawsuits filed by victims who are not part of the current litigation. While most of the settlement’s participants have agreed to these terms, the U.S. Trustee Program argues that the Sacklers should not be entitled to bankruptcy protections since they have not personally declared bankruptcy.
The Arguments
One argument in favor of granting the Sacklers protection is that denying it could potentially derail the settlement and prevent victims from receiving timely compensation. However, opponents argue that individual victims should have the right to pursue their own lawsuits and potentially negotiate better settlements.
The Supreme Court’s Leanings
During the oral arguments, the Supreme Court justices appeared torn but leaning towards approving the settlement. The outcome of this case will have significant implications for the legal standing of the Sackler family and the rights of future victims to seek compensation.
The Opioid Crisis
This case highlights the responsibility of the Sackler family for their role in the opioid crisis. Purdue Pharma, with the approval of the Food and Drug Administration (FDA), misleadingly marketed OxyContin as a safer alternative to other painkillers. However, internal documents later revealed that the company was aware of the drug’s addictive potential and risks.
The Consequences
The widespread availability of opioids in the 2000s led to a surge in overdose deaths and addiction. As a result, states enacted laws to restrict opioid prescriptions. This, in turn, fueled the rise of illegal drugs such as heroin and fentanyl. The American street drug supply has since been heavily contaminated by fentanyl, leading to a significant increase in overdose deaths.
The Resolution
If the Supreme Court approves the bankruptcy plan, Purdue Pharma will be converted into a public trust overseen by an independent board. The Sacklers will lose the $6 billion they have agreed to pay, but they will still retain their considerable wealth. Their name will also be removed from various institutions.
Despite the resolution of this case, it is crucial to acknowledge the immense harm caused by the Sackler family and their role in perpetuating the opioid crisis in the United States.
