June 30, 2024: This past week, the Supreme Court overruled the Second Circuit (and decades of bankruptcy precedent) in Harrington vs. Purdue, a mass-torte, 50-state, 100,000 victim lawsuit. With a 5-3 majority, the Supreme Court ruled that bankruptcy law does not grant the courts the authority to issue an injunction to stop future litigation from being brought against pharma companies, pharma execs, their families, or their affiliated companies for; fraud, willful injury, negligence, and/or other claims; in exchange for paying billions of dollars for class-action settlements.
Supreme Court Strikes Down 50-State Bankruptcy Deal that Granted Pharma Execs Immunity from Fraud & Willful Injury
"The Sacklers sought an injunction “forever staying, restraining, and enjoining” claims against them. It sought to extinguish claims for negligence, fraud and willful misconduct." - Justice Gorsuch
