In a landmark decision on Thursday, the US Supreme Court ruled against granting the Sackler family legal protections in connection to the opioid crisis. The ruling, reported by the New York Times, represents a significant setback for the family behind Purdue Pharma, the makers of the highly addictive painkiller OxyContin.
The 5-4 decision, authored by Justice Neil Gorsuch, determined that the federal bankruptcy code does not permit third-party liability shields within bankruptcy agreements. This decision impacts a proposed settlement where the Sacklers had agreed to pay up to $6 billion to address the opioid epidemic.
Justice Brett Kavanaugh, in his dissent, criticized the majority decision as “wrong on the law” and “devastating for more than 100,000 opioid victims and their families.”
The settlement, initially approved in 2021, involved the dissolution of Purdue Pharma and the distribution of $4.5 billion to mitigate the opioid crisis and settle numerous related claims. This deal included a contentious clause that would have shielded the Sacklers from future civil litigation.
Later that year, a federal judge invalidated the settlement, arguing that the Sacklers should not be immune from civil liability in opioid-related lawsuits. In May 2023, an appeals court reinstated the Sacklers’ protections after the family increased the settlement offer by approximately $1.73 billion.
However, earlier this month, the US Trustee Program, a division of the Justice Department, contested the liability shield, claiming it misused the bankruptcy system, and urged the Supreme Court to review the agreement.
The Sackler family, particularly members associated with Purdue Pharma, the pharmaceutical company known for producing and marketing OxyContin, has been embroiled in controversy related to the opioid crisis. The opioid crisis refers to the widespread misuse and addiction to prescription painkillers, including OxyContin, which has devastated public health and communities. The controversy surrounding the Sackler family stems from allegations that Purdue Pharma engaged in aggressive marketing tactics and downplayed the addictive nature of OxyContin, contributing to the opioid crisis. The company faced lawsuits and legal settlements related to these allegations, including accusations of deceptive marketing practices and improper promotion of OxyContin.
The Sackler family were prominent benefactors of some of the world’s leading art institutions for years. However, the fallout from Purdue Pharma’s involvement in the opioid crisis has led to a reevaluation of its legacy. Prestigious institutions such as London’s National Gallery, the Victoria & Albert Museum, the Serpentine Galleries, The Louvre, The Met, The Smithsonian and the Guggenheim Museum in New York have since removed the Sackler name from their buildings following intense protests from activists.