In Harrington v. Purdue Pharma L.P., will the Supreme Court rule that a bankruptcy court could approve OxyContin-maker Purdue Pharma's reorganization plan, which includes nonconsensual, nondebtor releases?
Closing Jul 01, 2024 07:01AM UTC
Purdue Pharma declared bankruptcy as it faced heavy liability for its role in the US opioid crisis, and agreed in a bankruptcy court to contribute billions of dollars in exchange for, among other things, a release from further civil liability for the Sackler family owners of the firm (AP, CNN, USA Today). A federal district court ruled that the bankruptcy court lacked the authority to approve a plan that included nonconsensual releases for third parties, which the Second Circuit reversed due to binding precedent (Oyez, SCOTUSblog, Second Circuit - In Re: Purdue Pharma (2023)). The Supreme Court is expected to hand down its decision in its 2023 term, but if it does not, the question will close as "No." If the Court decides this case without addressing this question's particular issue of law, the question will close as "No."