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Supreme Court shot down the validity of nonconsensual third-party releases in an opinion issued Thursday in the case of bankrupt drugmaker PurduePharmaLP, potentially exposing the Sackler family members who own the company to personal liability for the company's role in the opioid crisis.
Bankrupt OxyContin maker PurduePharmaLP filed a new Chapter 11 plan in a New York bankruptcy court, including a $6.5 billion payment from members of the Sackler family who own the company and $900 million from the debtor, that aims to compensate thousands of creditors for damages from opioid sales.
Supreme Court's decision that the Sackler family members who own PurduePharmaLP cannot be shielded by the bankruptcy code from lawsuits over the opioid crisis reflects the widespread public outrage over their role in the epidemic, but experts say it remains unclear what will happen next for the individuals and governments that have sued the company. (..)
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