Supreme Court blocks Purdue Pharma's $6 billion opioid settlement, will hear challenge

Protesters holding banners outside the courthouse. Members of P.A.I.N. (Prescription Addiction Intervention Now) and Truth Pharm staged a rally and die-in outside New York’s Southern District Federal Court in White Plains.

Erik McGregor | LightRocket | Getty Images

The Supreme Court on Thursday blocked for now a $6 billion bankruptcy settlement by Purdue Pharma that would protect its Sackler family owners from civil lawsuits related to opioid abuse.

The Supreme Court also said it will hear a challenge to the settlement by Purdue, the maker of the opioid OxyContin.

The order Thursday directed parties to file briefs on a question of whether U.S. Bankruptcy courts can approve a Chapter 11 reorganization that releases claims by non-debtors against not-debtor third parties “without the claimants’ consent.”

The case will be argued by the end of this year.

The stay on the settlement will be lifted once the court rules.

This is breaking news. Please check back for updates.

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