Supreme Court Ruling Alters Landscape in Bankruptcy Cases, Revoking Sackler Liability Shield


The recent U.S. Supreme Court decision to eliminate the Sackler family’s liability shield in the Chapter 11 plan of Purdue Pharma LP represents a significant shift in the handling of mass tort liabilities. This ruling, as explained by experts to Law360, effectively dismantles a critical mechanism historically utilized in bankruptcy proceedings. By rescinding this shield, the court has granted claimants increased leverage and has fundamentally altered the insolvency landscape for future cases.