Supreme Court to Decide Immunity and Billions in Purdue Pharma Bankruptcy Case

The Supreme Court is set to hear arguments on whether a settlement agreement that grants immunity to the Sackler family, former owners of Purdue Pharma, from civil lawsuits related to the opioid crisis violates federal law. The case could have far-reaching implications for organizations seeking bankruptcy protection to resolve mass injury claims. The legal maneuver in question, known as third-party nonconsensual releases, has been used in settlements involving other entities facing mass injury claims, such as the Boy Scouts of America and the Catholic Church. The outcome of the case could determine the extent of legal protections granted in such settlements and potentially upend similar agreements.