The Supreme Court has just blocked a $6 billion Purdue Pharma bankruptcy settlement that would protect the Sackler family from opioid-related civil claims

On Thursday, the Supreme Court halted Purdue Pharma's progress in its bankruptcy proceedings. The Biden administration had criticized this unusual arrangement, aimed at shielding the Sackler family from civil claims related to opioids.

The court not only agreed to temporarily stop the settlement but also announced its intention to examine the case and listen to arguments in December.

This situation emerged from the bankruptcy reorganization of Purdue Pharma, the maker of OxyContin. This reorganization was a response to litigation surrounding the company's alleged contribution to the opioid addiction crisis.

Until recently, the Sackler family had control over Purdue. Prior to the company's bankruptcy filing, they extracted billions of dollars from it. Now, the Sacklers have committed to contributing as much as $6 billion to Purdue's restructuring fund, under the condition that they are released from civil liability.

Purdue Pharma released a statement expressing confidence in the legality of their widely supported Plan of Reorganization. However, they expressed disappointment in the US Trustee's ability to single-handedly delay the release of billions of dollars meant for victim compensation, addressing the opioid crisis in communities nationwide, and providing overdose rescue medications.