TBA Law Blog


Posted by: Paul Burch on Jul 31, 2023

The Department of Justice (DOJ) and the Office of the U.S. Trustee asked the U.S. Supreme Court on Friday to halt Purdue Pharma from proceeding with a bankruptcy settlement that protects the company’s owners, the Sackler family, from lawsuits, reports Reuters. The DOJ argued that Purdue should not be allowed to move forward with its restructuring before the Supreme Court weighs in on legal protections for non-bankrupt entities, an issue that has divided bankruptcy courts across the U.S. Last week, an appeals court ruled that Purdue may proceed with a plan approved in May that would shield the Sacklers from opioid related lawsuits in exchange for a $6 billion contribution to the company's broader bankruptcy settlement.