Golden State Today

California Attorney General Rob Bonta released a statement following the U.S. Supreme Court's decision to strike down Purdue Pharma L.P.’s bankruptcy plan in Harrington v. Purdue Pharma. The ruling determined that nonconsensual third-party releases are not authorized under the Bankruptcy Code. Purdue’s plan had granted the Sackler family, owners of Purdue, immunity in exchange for up to $6 billion for claims related to OxyContin's misleading marketing and their role in the opioid crisis.

The decision overturns a previous ruling by the U.S. Court of Appeals for the Second Circuit, which had provided extensive liability protection to the Sacklers beyond what they would have received through personal bankruptcy.

“For years, the Sackler family prioritized their own interests and profits over people, fueling the opioid epidemic that ravaged our communities and led to the loss of countless lives across our country,” said Attorney General Bonta. “No amount of money will ever undo the devastation that the Sacklers and Purdue Pharma have caused in perpetuating this crisis, but today’s decision will allow those that have suffered at the hands of the Sacklers to hold them accountable for their greed and willful misconduct.”

Attorney General Bonta emphasized ongoing efforts to combat the opioid epidemic: “There is still much work to be done... from providing resources for prevention and treatment to holding those responsible for this crisis accountable.”

In September, Attorney General Bonta filed a letter with the U.S. Supreme Court arguing against nonconsensual third-party releases as unlawful. The California Department of Justice has secured over $48 billion through nationwide settlements, including up to $4.25 billion allocated for California.