Court is asking the parties to show whether bankruptcy law allows for a blanket shield from all litigation by opioid victims<\/p>\n<\/h3>\n
By Physician\u2019s Briefing Staff HealthDay Reporter<\/b><\/p>\n
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FRIDAY, Aug. 11, 2023 (HealthDay News) — A bankruptcy deal that would have shielded the family behind the company that makes Oxycontin from civil lawsuits was temporarily blocked<\/a> by the U.S. Supreme Court on Thursday. President Joe Biden had asked for a delay in approval of the nationwide settlement, which had been reached with state and local governments.<\/p>\n The settlement with Purdue Pharma would allow the company to become a different entity after emerging from bankruptcy. The Sackler family would contribute $6 billion, but its members would be protected from future lawsuits, the Associated Press<\/em> reported. The court is asking the parties to show whether bankruptcy law allows for a blanket shield from all litigation by opioid victims.<\/p>\n While the 2nd U.S. Circuit Court of Appeals allowed the reorganization plan, the U.S. Bankruptcy Trustee is opposed to the shield on lawsuits, the AP<\/em> said. The trustee is being represented by the Justice Department.<\/p>\n “We are confident in the legality of our nearly universally supported Plan of Reorganization, and optimistic that the Supreme Court will agree,” Purdue Pharma said in a statement, the AP<\/em> reported. “Even so, we are disappointed that the U.S. Trustee, despite having no concrete interest in the outcome of this process, has been able to single-handedly delay billions of dollars in value that should be put to use for victim compensation, opioid crisis abatement for communities across the country, and overdose rescue medicines.”<\/p>\n A group of parents whose children died from opioid overdoses is asking that the settlement not be accepted, the AP<\/em> reported. However, other victims were disappointed at the delay. Their attorney, Ed Neiger, praised the court for hearing the case quickly. “They clearly see the urgency of the matter,” Neiger said.<\/p>\n