The U.S. Supreme Court has temporarily blocked Purdue Pharma's plan to emerge from bankruptcy, a plan that has shielded the Sackler families from liability in the nation's opioid epidemic.
The application for a stay, brought by the U.S. Department of Justice, was presented to Justice Sonia Sotomayor and referred by her to the wider court, which agreed to hear argument on whether the nation's bankruptcy laws allow a court to approve, as part of a, a release from litigation for third parties who are not themselves filing for bankruptcy.
A federal judge in New York initially blocked the reorganization, however, ruling that bankruptcy laws do not allow liability shields to be given to parties that aren't actually filing for bankruptcy. In this May 8, 2007, file photo, the Purdue Pharma logo is shown on the headquarters building in Stamford, Conn.In a statement, Purdue Pharma said: "We are confident in the legality of our nearly universally supported Plan of Reorganization, and optimistic that the Supreme Court will agree. Even so, we are disappointed that the U.S.
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