Press Releases
08/10/2023
Attorney General Tong Statement on Supreme Court Stay of Purdue Settlement
(Hartford, CT) – Attorney General William Tong today issued a statement following the announcement by the U.S. Supreme Court that it will stay the Purdue bankruptcy order and hear the challenge filed by the U.S. Department of Justice.A decision by the U.S. Circuit Court of Appeals for the Second Circuit in May overturned a U.S. District Court ruling that had previously vacated a Purdue bankruptcy order over its reliance on so-called “nonconsensual third-party releases” forcing states and other parties to grant unprecedented lifetime legal immunity to the Sackler family.
The U.S. District Court ruling from Judge Colleen McMahon ultimately paved the way for Attorney General Tong and eight other dissenting attorneys general to negotiate a settlement forcing Purdue and the Sacklers to pay $6 billion to victims, survivors and states, to permanently exit the global opioid business, and to force the Sacklers to reckon face-to-face with victims and survivors at a public hearing.
As part of that settlement, Connecticut did not participate in the appeal before the Second Circuit. Connecticut reserved its right to continue its opposition to third-party releases before the U.S. Supreme Court.
“The U.S. District Court refused billionaire wrongdoers the right to exploit our bankruptcy laws, and I will firmly stand behind that decision now before the U.S. Supreme Court. Connecticut led the way in extracting $6 billion from Purdue and the Sacklers for their callous misconduct. The settlement, which Connecticut consented to, forced 40 percent more in support for victims, survivors and states than the amount in the bankruptcy plan. But I believed then and I continue to believe now that non-consensual third-party releases are wrong, and should not be abused in bankruptcy court to enable the worst offenders to cram settlements down the mouths of dissenting victims. From day one, this has been a fight for justice for the thousands of victims and survivors of Purdue’s misconduct and the Sackler family’s craven pursuit of wealth. We have always reserved our right to participate before the Supreme Court alongside our sister states and families and victims, and we are reviewing our options now,” said Attorney General Tong.
Attorney General Tong testified in 2021 before the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law in support of reforms to bankruptcy laws that would prohibit non-bankrupt individuals and businesses from exploiting loopholes in the bankruptcy code to evade accountability.
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