I think there's a misunderstanding in what the settlement is about. As part of Purdue's bankruptcy, the Sackler family is voluntarily providing 6 billion dollars to help settle claims opioid victims have brought against Purdue Pharma.
As a condition to provide the 6 billion dollars, the Sackler family has asked the bankruptcy judge to not even allow any new suits against the Sacklers related to the Opioid epidemic. This is something bankruptcy courts do regular for the company Purdue Pharma, but it is irregular when it comes to the Sackler family (this is not the entity going bankrupt!)
This is the issue that went up to the Supreme Court, and the Supreme Court ruled that the protection given to the Sackler family is not something that can be given by a bankruptcy judge during the bankruptcy of Purdue Pharma.
As a condition to provide the 6 billion dollars, the Sackler family has asked the bankruptcy judge to not even allow any new suits against the Sacklers related to the Opioid epidemic. This is something bankruptcy courts do regular for the company Purdue Pharma, but it is irregular when it comes to the Sackler family (this is not the entity going bankrupt!)
This is the issue that went up to the Supreme Court, and the Supreme Court ruled that the protection given to the Sackler family is not something that can be given by a bankruptcy judge during the bankruptcy of Purdue Pharma.
Matt Levine has a much better explanation here: https://www.bloomberg.com/opinion/articles/2024-06-27/purdue...