Purdue Bankruptcy Settlement ‘Back To Square One’ After US Supreme Court Rejection

In a 5-4 decision, the high court says a Chapter 11 bankruptcy plan provision releasing the Sackler family from future liability is not allowed, a decision that could spur a bolus of personal injury trials if another reorganization plan settling thousands of claims cannot be reached.

Square one
It's back to square one for Purdue on its Chapter 11 reorganization. • Source: Shutterstock

Purdue Pharma L.P. must go back to the drawing board to settle thousands of personal injury, state and other jurisdictions' claims for its role in the opioid epidemic now that the US Supreme Court has effectively blocked its bankruptcy reorganization plan.

In a 5-4

Key Takeaways
  • The reorganization plan provision extinguishing the Sackler family’s future liability is not allowed under the bankruptcy code, the Supreme Court majority said

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