Supreme Court Hears Arguments in Opioid Maker Bankruptcy Case

The Sackler family, which founded Purdue Pharma, is getting an unusually good deal, potentially at the expense of victims, the Biden administration says.

Signs in the shape of grave headstones, with information on people who died from using OxyContin, line a security fence outside the Supreme Court in Washington on Dec. 4, 2023. Stephanie Scarbrough/AP Photo

The Supreme Court heard the Biden administration’s objections to the bankruptcy plan filed by opioid manufacturer Purdue Pharma, which includes a controversial settlement that would shield the company’s founding family from future opioid-related liability.

The government argued that opioid victims could be shortchanged if the settlement is allowed to stand, a claim the company denied. The Biden administration said in court papers that the settlement as currently constituted would provide “a roadmap for corporations and wealthy individuals to misuse the bankruptcy system to avoid mass-tort liability.”