U.S. Supreme Court decision rejects Purdue Pharma opioid settlement,

The U.S. Supreme Court on Thursday rejected a nationwide settlement with OxyContin maker Purdue Pharma that would have shielded members of the Sackler family who own the company from civil lawsuits over the toll of opioids but also would have provided billions of dollars to combat the opioid epidemic.

After deliberating more than six months, the justices in a 5-4 vote blocked an agreement hammered out with state and local governments and victims. The Sacklers would have contributed up to $6 billion US and given up ownership of the company but retained billions more. The agreement provided that the company would emerge from bankruptcy as a different entity, with its profits used for treatment and prevention.

Justice Neil Gorsuch, writing for the majority, said “nothing in present law authorizes the Sackler discharge.”

Justices Brett Kavanaugh, Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor dissented.

“Today’s decision is wrong on the law and devastating for more than 100,000 opioid victims and their families,” Kavanaugh wrote.

“Opioid victims and other future victims of mass torts will suffer greatly in the wake of today’s unfortunate and destabilizing decision.”

WATCH l A recap of the arguments before the court:

U.S. Supreme Court weighs Purdue Pharma opioid settlement

The U.S. Supreme Court debates Oxycontin maker Purdue Pharma’s bankruptcy settlement and whether company owners, the Sackler family — who have not filed for personal bankruptcy, can be held liable for the opioid epidemic.

‘A mockery of the justice system’

The Purdue Pharma settlement would have ranked among the largest reached by drug companies, wholesalers and pharmacies to resolve epidemic-related lawsuits filed by state, local and Native American tribal governments and others.

Those settlements have totalled more than $50 billion. But the Purdue Pharma settlement would have been only the second so far to include direct payments to victims from a $750 million pool. Payouts would have ranged from about $3,500 to $48,000.

The high court had put the settlement on hold last summer, in response to objections from the Biden administration.

It’s unclear what happens next.

“The Purdue plan was a victim-centred plan that would provide billions of dollars to the states to be used exclusively to abate the opioid crisis and $750 million for victims of the crisis, so that they could begin to rebuild their lives,” Edward Neiger, a lawyer representing more than 60,000 overdose victims, said in a statement. “As a result of the senseless three-year crusade by the government against the plan, thousands of people died of overdose, and today’s decision will lead to more needless overdose deaths.”

A relatively small but vocal group of victims and family members opposed the settlement, including Ed Bisch, whose teen son Eddie died from an…