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Billionaires, Bankruptcy, and the Opioid Crisis: Will the Sacklers Escape Accountability?

The opioid crisis has ravaged communities across the United States, leading to countless deaths and untold suffering. At the center of this public health catastrophe is the Sackler family, owners of Purdue Pharma, the company behind OxyContin, a prescription painkiller that played a pivotal role in the epidemic. As the crisis deepened, scrutiny of the Sackler family’s role intensified, culminating in their pursuit of bankruptcy protection that has stirred widespread outrage and legal debate.

The Sackler Family’s Role in the Opioid Crisis

The Sackler family’s connection to the opioid crisis began with the aggressive marketing of OxyContin, introduced by Purdue Pharma in 1996. The company claimed that OxyContin was a breakthrough in pain management, emphasizing its supposed low risk of addiction. However, internal documents and subsequent investigations revealed that Purdue Pharma, under the Sacklers’ direction, downplayed the drug’s addictive potential and encouraged its widespread prescription.

This strategy proved devastatingly effective. Sales of OxyContin soared, and so did rates of opioid addiction and overdose deaths. Communities across the nation were engulfed by the crisis, with countless lives lost and families shattered. As the evidence of Purdue Pharma’s deceptive practices mounted, so did legal actions against the company and the Sackler family.

Bankruptcy Protection Controversy

Facing a tsunami of lawsuits, Purdue Pharma filed for bankruptcy in 2019. This move was controversial not just because of the company’s role in the opioid epidemic, but because the Sackler family sought to use the bankruptcy process to shield themselves from personal liability. Under the proposed settlement, the Sacklers agreed to pay $6 billion and relinquish control of Purdue Pharma, which would be reorganized into a new entity focused on addressing the opioid crisis. In exchange, they sought immunity from further civil litigation related to opioids.

Critics argue that this maneuver is a gross misuse of the bankruptcy system, designed to allow the Sackler family to preserve their vast personal wealth while escaping full accountability for their actions. Unlike typical bankruptcy cases, where individuals or entities declare bankruptcy to address insurmountable debts, the Sacklers themselves are not declaring bankruptcy. Instead, they are leveraging Purdue Pharma’s bankruptcy to obtain broad legal protections, a tactic that many see as fundamentally unjust.

Implications for Accountability and Justice

Allowing the Sackler family to secure bankruptcy protections without personal bankruptcy sets a dangerous precedent. It suggests that wealthy individuals and corporate leaders can evade personal responsibility for their actions through strategic use of bankruptcy laws. This undermines the principle that all individuals and entities should be held accountable for their wrongdoing, regardless of their financial status.

The legal protections sought by the Sacklers also have significant implications for the victims of the opioid crisis. Many of those affected argue that the proposed settlement does not provide adequate compensation or justice for the harm caused. They contend that the Sackler family should face the full brunt of civil litigation to ensure they are held accountable for their role in the epidemic.

The Supreme Court’s Role

The debate over the Sackler family’s use of bankruptcy protections is set to reach a critical juncture in the summer of 2024, when the Supreme Court is expected to rule on the legality of the settlement. The Court’s decision will have far-reaching consequences for the accountability of corporate leaders and the integrity of the bankruptcy process.

A ruling in favor of the Sacklers could embolden other wealthy individuals and corporations to use bankruptcy strategically to evade liability. Conversely, a decision against the Sacklers would reinforce the principle that the bankruptcy system cannot be manipulated to shield wrongdoers from justice.

Conclusion

The Sackler family’s attempt to use Purdue Pharma’s bankruptcy to secure personal immunity from opioid-related lawsuits highlights a troubling loophole in the bankruptcy system. As the Supreme Court prepares to weigh in on this contentious issue, the stakes could not be higher. Ensuring accountability for those who have contributed to the opioid crisis is not just a matter of legal principle, but a necessary step towards justice for the countless victims and communities devastated by this ongoing epidemic.

In a just society, no one—regardless of wealth or influence—should be able to escape the consequences of their actions. The Supreme Court’s decision will be a pivotal moment in determining whether this fundamental tenet of justice is upheld.

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Matthew Dillahunty

Attorney Matthew Dillahunty specializes in Personal Injury Law focusing on toxic exposures, product liability, car and truck wrecks, workplace related injuries such as maritime and oil and gas personal injury cases.