Attorney General Bonta Welcomes Supreme Court Decision Blocking Purdue Bankruptcy Plan

OAKLAND — California Attorney General Rob Bonta today welcomed a decision by the U.S. Supreme Court that temporarily blocks OxyContin maker Purdue Pharma’s bankruptcy reorganization plan from moving forward while it reviews its fairness and legality. Purdue Pharma is the manufacturer of OxyContin, a powerful prescription opioid and key contributor to the opioid crisis. Purdue’s bankruptcy reorganization plan included sweeping nonconsensual third-party releases that unfairly shielded members of the Sackler family, the owners of Purdue Pharma, from all private civil lawsuits by individuals harmed by the Sacklers’ misconduct.

"This ruling is an important development for the countless victims whose lives have been ripped apart by the opioid crisis," said Attorney General Bonta. "Those who wish to seek justice against the ringleaders of the crisis – the Sackler family – should not be blocked by a bankruptcy plan that they never agreed to. The Sacklers fueled and profited from a crisis that caused immense pain and suffering in our communities – the bankruptcy process is not a tool for corporations to shield their billionaire owners from private liability for their personal misconduct. We are pleased that by temporarily blocking Purdue's bankruptcy plan, the Supreme Court will review the fairness and legality of the plan’s nonconsensual liability shield for the Sackler family.”

Attorney General Bonta has previously voiced strong concerns about the Purdue bankruptcy plan, and urged the United States Court of Appeals for the Second Circuit to strike down the nonconsensual Sackler releases. While the Supreme Court decision puts on hold the $6 billion settlement agreement between Purdue Pharma and a number of states, including California, Attorney General Bonta hopes for a path forward that would bring much-needed resources to impacted communities while ensuring that those who wish to seek justice against the Sackler family are allowed to do so.