The Daily

Sackler Immunity and the Purdue Pharma Settlement

SCOTUS court watchers were a little shocked that the Court blocked the Purdue Pharma / Sackler settlement – even if temporarily – and there is a lot of buzz about how they will answer this question: whether the Bankruptcy Code authorizes a court to approve, as part of a plan of reorganization under Chapter 11 of the Bankruptcy Code, a release that extinguishes third party claims (including claims not yet brought).

Recently, the U.S. Supreme Court stayed the implementation of the Purdue Pharma LP Chapter 11 plan that contains as a key feature the settlement with the Sackler family for approximately $6 billion that, in return, prevents any other creditor from suing the family.

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