SC Freezes Purdue Pharma Bankruptcy Deal

The Supreme Court put the bankruptcy reorganization of opioid maker Purdue Pharma on hold, granting a request from the White House that raised objections about a provision that protects the Sackler family from liability for lawsuits, Lawrence Hurley reported for NBC News.

Photo Insert: The Sackler family had agreed to pay $6 billion that could be used to settle opioid-related claims but only in return for a complete release from any liability in future cases.

The justices, in a brief order with no dissenting votes noted, blocked an appeals court decision that allowed the bankruptcy to move forward.

As part of the deal, the Sackler family, which controlled the company, had agreed to pay $6 billion that could be used to settle opioid-related claims but only in return for a complete release from any liability in future cases.

The court also agreed to take up the government's appeal, meaning it will hear oral arguments in December and likely issue a ruling early next year. The legal question raised is whether the bankruptcy court had the authority to release the Sackler family members from the claims being made by opioid victims.

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