Monday, December 9, 2019

BREAKING: U.S. Supreme Court REJECTS Arizona's Request To Sue Opioid Manufacturer's Family To Retrieve "Looted" Billions

(Updated, 9:00a.m.: Added statement from AG Brnovich)

In an Order this morning, the U.S. Supreme Court decided that Arizona cannot proceed with an unusual trial case in the nation's highest court to try to retrieve $4B from the Sackler family to apply to lawsuits against Purdue Pharma, one of the largest opioid manufacturers.

Attorney General Mark Brnovich expressed his disappointment with the Court's Order, and he indicated that he would "continue to fight for Arizona's interests in the Purdue bankruptcy proceedings." (Full statement to "AZ Law" is below.)

Arizona's surprising approach to ask the Supreme Court to take original jurisdiction in order to set aside alleged fraudulent transfers of wealth from Purdue to the Sacklers has run into the bankruptcy case subsequently filed by Purdue Pharma.

Arizona answered Purdue by telling the Court last month that it would be unconstitutional for the Bankruptcy Code's automatic stay provisions to prevent the highest court from accepting original jurisdiction to handle a case like this. (See Reply Brief, below)

With a one sentence order, the Supreme Court denied Arizona's request.

This is one of two cases where Arizona has been asking the Supreme Court to take original jurisdiction of a case (rather than its normal task of handling appeals from lower courts). The other is the case against California regarding taxes imposed on Arizona-based LLCs. The Justices have asked the United States Solicitor General to express his opinion on whether the court should hear the case.

Arizona AG Mark Brnovich's full reaction:
“Due to the magnitude of the opioid crisis across our country, we are disappointed that we cannot bring our claims directly in the Supreme Court. Nevertheless, we respect the Court’s decision and thank those states that supported Arizona’s filing with an Amicus Brief.  Today’s ruling will not end our efforts to hold Purdue and the Sacklers accountable for their role in the opioid crisis.  We will continue to fight for Arizona’s interests in the Purdue bankruptcy proceedings.”


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