In its Purdue Pharma decision, the United States Supreme Court weakened the ability of mass tort victims to recover from injurers. The beneficiaries of this decision are fee-collecting attorneys and large institutions (such as state attorneys general) that can now divert money from victims to themselves during settlement negotiations. Unless Congress restores the power of bankruptcy courts to implement settlements like the one in Purdue Pharma, we must count on attorneys and courts to find imperfect ways to neutralize this unwise and harmful decision.  

The bankruptcy court in Purdue Pharma had approved a settlement that ended civil litigation against Purdue’s owners (the Sacklers) in exchange for a $6 billion payment. The settlement was binding on all victims, even the small minority who objected to it. The Court’s decision categorically undid that settlement and forbade similar settlements going forward.

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