The US Supreme Court has invalidated the bankruptcy settlement of OxyContin manufacturer Purdue Pharma, which aimed to protect the wealthy Sackler family from legal actions related to their involvement in the fatal opioid crisis in the US. In a 5-4 decision, the Court overturned a previous ruling that had supported the plan to grant immunity to Purdue Pharma's owners by offering up to $6 billion to settle numerous lawsuits accusing the company of deceptive marketing of OxyContin. The ruling, declared on Thursday, marks a win for the Biden administration, which contested the settlement as an exploitation of bankruptcy safeguards intended for financially distressed debtors, not individuals like the Sacklers who have not filed for bankruptcy. Purdue Pharma filed for Chapter 11 bankruptcy in 2019 to address its debts mainly from lawsuits alleging OxyContin's contribution to the opioid crisis, which has led to over half a million overdose deaths in the US. The case revolved around whether US bankruptcy law permits Purdue Pharma's reorganization to include legal protections for the Sackler family members who haven't filed for personal bankruptcy. These "non-debtor releases" were initially used in asbestos litigation but have been expanded by companies seeking to leverage such protections. The settlement, estimated to provide $10 billion in value to creditors, was approved in 2021 by a bankruptcy judge. The Biden administration and eight states opposed the settlement, with states withdrawing objections after the Sacklers agreed to contribute more. However, the Justice Department's bankruptcy watchdog and certain plaintiffs continued to oppose it. A group representing over 60,000 individuals with personal injury claims against Purdue Pharma supported the settlement, backing legal immunity for the Sackler family members. In a May 2023 ruling, the US Court of Appeals 2nd Circuit upheld the settlement, stating that bankruptcy law allows legal protections for non-bankrupt parties in exceptional cases. The Supreme Court paused bankruptcy proceedings in August 2023 to review the appeal. The Sackler family, accused of driving the opioid crisis through deceptive marketing, denied wrongdoing but acknowledged OxyContin's role. They stated in May 2023 that the settlement would offer substantial aid to affected communities. Purdue Pharma criticized the US Trustee for delaying compensation and crisis relief, arguing the funds could assist victims and communities affected by the opioid epidemic.