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Major OxyContin case headlines December session https://www.scotusblog.com/2023/11/major-oxycontin-case-headlines-december-session/ 'The justices will hear oral argument on Dec. 4 in one of their highest-profile bankruptcy cases in recent memory: Harrington v. Purdue Pharma, a challenge to the approval by the U.S. Court of Appeals for the 2nd Circuit of a bankruptcy plan for Purdue Pharma, the maker of OxyContin.

Faced with thousands of lawsuits accusing it of having deceptively marketed the highly addictive drug, Purdue Pharma filed for bankruptcy in 2019. It proposed a reorganization plan that would remake the company as a nonprofit devoted to addressing the public health problems caused by the opioid epidemic. But the plan would also release members of the Sackler family, which owned the company and had taken billions of dollars out of the company in recent years, from any future liability for claims against them.

The U.S. Trustee, the division of the Department of Justice that oversees the administration of bankruptcy cases, came to the Supreme Court over the summer, asking the justices to put the plan on hold. The justices agreed to do so and set the case for oral argument in December.

There are two main questions before the court. The first is whether the U.S. Trustee or the Canadian creditors challenging the plan have a right to do so at all, while the second question is whether the court of appeals was correct to confirm the plan. And more broadly, the case raises questions about whether and when it is appropriate to resolve mass tort cases – that is, lawsuits brought by a group of people who have been harmed in a similar way, such as in a plane crash or by a defective product – through the bankruptcy system.'
#SCOTUS #opioids #bankruptcy #liability #healthlaw