The Supreme Court rejects a nationwide opioid settlement with OxyContin maker Purdue Pharma

WASHINGTON (AP) — The 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.

The decision also could affect other major bankruptcies, including the $2.4 billion bankruptcy plan for the Boy Scouts of America that has been approved by a federal judge, lawyers said.

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 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.”

Chief Justice John Roberts and Justices Brett Kavanaugh, Elena Kagan and Sonia Sotomayor dissented.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«RELATED COVERAGE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> RELATED COVERAGE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> What it means for the Supreme Court to block enforcement of the EPA’s ‘good neighbor’ pollution rule </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> The Supreme Court allows emergency abortions in Idaho for now in a limited ruling </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»>