Daily Briefing

Around the nation: SCOTUS freezes bankruptcy deal for Purdue Pharma


The Supreme Court of the United States (SCOTUS) on Thursday temporarily blocked a bankruptcy deal for Purdue Pharma that would have protected the Sackler family — the owners of the company — from additional civil lawsuits regarding the opioid epidemic and capped the Sacklers' personal liability at $6 billion, in today's bite-sized hospital and health industry news from the District of Columbia and Florida.

 

  • District of Columbia: SCOTUS on Thursday temporarily blocked a bankruptcy deal for Purdue Pharma that would have protected the Sackler family — the owners of the company — from additional civil lawsuits regarding the opioid epidemic and capped the Sacklers' personal liability at $6 billion. The Justice Department argued the bankruptcy plan allowed members of the Sackler family to take advantage of legal protections intended for people in "financial distress" and that the bankruptcy court couldn't grant the Sacklers immunity from claims by opioid victims. In response, SCOTUS paused the deal and said it will review the agreement and hear arguments in December. (Bettelheim, Axios, 8/10; VanSickle/Hoffman, New York Times, 8/10)
  • District of Columbia: A federal judge on Wednesday struck down FDA's authority to regulate premium, hand-rolled cigars. In 2009, Congress passed the Tobacco Control Act in which FDA was given broad authority over cigarettes and smokeless tobacco and the ability to identify which products were subject to the law. In 2014, FDA began regulating cigars, ultimately requiring premium cigar makers to conduct extensive studies on their products, list their ingredients, and register with the agency every year. Last year, U.S. District Judge Amit Mehta ruled that FDA's move to regulate premium cigars under the Tobacco Control Act was "arbitrary and capricious," and in his ruling on Wednesday, Mehta maintained his stance and vacated FDA's ability to regulate premium cigars. (Jewett, New York Times, 8/10)
  • Florida: Cano Health on Thursday announced it is laying off 700 employees, or 17% of its workforce, as the primary care company is exploring a sale. "We have already been working with advisors and are encouraged with the progress made so far," said Mark Kent, Cano's interim CEO. In a press release, management said it hasn't set a timetable for the conclusion of a sale. (Landi, Fierce Healthcare, 8/10)

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