Supreme Court overturns opioid settlement with Purdue Pharma that shielded Sacklers : Shots

After the Supreme Court struck down the controversial bankruptcy law plan Those suing the drug company from Purdue Pharma, the maker of OxyContin, were left uncertain about when promised funds would be available to combat addiction and other harms from the ongoing drug epidemic.

of Verdict The ruling upended a carefully crafted settlement worth roughly $8 billion that involved the Sackler family, who own Purdue, and all the individuals, states and local governments that had claimed harm from the opioid epidemic.

In their 5-4 decision, the justices focused on the part of Purdue’s bankruptcy plan that shields members of the Sackler family from future opioid-related lawsuits.

In the majority opinion, Justice Neil Gorsuch wrote: “In this case, the Sacklers are seeking what essentially amounts to a discharge even though they have not filed for bankruptcy or put all their assets on the table for distribution to creditors. [bankruptcy] The Code allows for such relief.”

Some family members of overdose victims have praised the decision. Ed Bisch’s son, also named Ed, overdosed on OxyContin in 2001 at age 18. Bisch now Family opposition to Purdue Pharmaand want the Sackler family to be held personally accountable.

“We didn’t want to give them exactly what they wanted,” Bish said. “Today is a very good day for justice to be served.”

Purdue Pharma faced thousands of lawsuits alleging that it contributed to the opioid crisis by falsely marketing OxyContin as non-addictive, and the company filed for bankruptcy in 2019.

Prior to that, the Sackler family, who own Purdue, had shifted about $11 billion in profits into personal accounts. In his ruling, Justice Gorsuch said members of the Sackler family had created a “sucking program” to hide opioid profits from the company’s bankruptcy.

During bankruptcy negotiations, the family offered to pay $6 billion in exchange for immunity from future lawsuits.

A federal bankruptcy court judge approved the deal in 2021, but Gorsuch found it to be too far-reaching.

“The court is doing a reset here.” Melissa JacobyHe is an expert on bankruptcy law at the University of North Carolina.[The Court is] “There is no power to protect the Sacklers, who are not bankruptcy filers, at least not from plaintiffs who have not agreed to a settlement.”

Both sides are frustrated by the new delays

The total settlement amount was to be approximately $8 billion to states, local governments, personal injury victims, schools and hospitals.

In a statement, Purdue Pharma called the ruling “heartbreaking” and said it would immediately contact both parties to work toward a new agreement. “This ruling will not deter us from our twin goals of using the settlement proceeds to reduce opioids and transforming our company into a force for good.”

The ongoing opioid crisis has recently caused more than 100,000 American deaths each year.

In a dissenting opinion, Justice Brett Kavanaugh wrote, “Today’s decision is unjust and devastating for the more than 100,000 opioid victims and their families.”

Many of the families of overdose victims thought the bankruptcy agreement was the best they could hope for — a way to funnel money from the Sacklers into local communities, providing funding for addiction treatment programs and individuals harmed by OxyContin. But that money could be frozen for years to come.

Calling for a speedy return to the negotiating table

Advocates called for new negotiations to be held as soon as possible.

“I think everyone wants to move this along quickly. It’s important that we come to the table and negotiate something quickly that puts victims first.” Ryan HamptonAn addiction writer and activist who supported the bankruptcy settlement.

Some have suggested that rather than waiting for Purdue’s formal bankruptcy proceedings to be completed, the Sacklers could use their personal funds to pay restitution to victims.

“The Sackler family should begin the process today to compensate the thousands of people who have lost loved ones to overdoses of their company’s products. There is no need to wait, and no time to waste,” he said. Regina Lovell Lovell is a former deputy director of the Office of National Drug Control Policy and a researcher on addiction policy at Georgetown University.

In a statement sent to NPR, members of the Sackler family denied any wrongdoing and said they would work to renegotiate the settlement, but they also took a defiant stance, calling them victims of a “serious misunderstanding about our family and the opioid crisis.”

Money is already flowing in from other opioid-related litigation.

Most states Already Participating Other opioid-related settlements with opioid manufacturers Johnson & Johnson, Teva Pharmaceutical Industries and Allergan, drug distributors AmerisourceBergen, Cardinal Health and McKesson, and retail pharmacies Walmart, Walgreens and CVS also involved many Reconcile National Kroger supermarket chain.

The total amount of payments from the multiple settlements is estimated to be approximately $50 billion.

Some of these transactions Payment has been initiated In late 2023, the state Opioid Settlement.

There is no national database on how settlement funds are being spent, Journalist’s efforts Activists who track the money have uncovered some of the common ways the money is spent.

There is great discretion in how to spend opioid settlement money

One of the biggest is investing in treatment: Many jurisdictions are building residential rehab facilities or expanding existing ones, covering the costs of addiction treatment for the uninsured, and increasing the number of doctors prescribing medications to treat opioid use disorder. Save lives.

Another common expenditure is for naloxone, a drug that reverses opioid overdoses. Wisconsin has Approximately $8 million Kentucky is taking part in this initiative. Donate $1 millionAnd many local governments Allocate a small amount.

Other options have also generated controversy. Several governments Dollars used as settlement money Buy new police patrol cars, technology to hack officers’ phones, and body scanners for prisons. Proponents say these tools are essential to cracking down on drug trafficking, but research suggests law enforcement efforts are not preventing overdoses.

This article is KFF Health Newsis a national newsroom that produces in-depth journalism on health issues. KFF.