Supreme Court Issues Rulings on Sacklers, SEC, and EPA

The Supreme Court on Thursday released a set of highly-anticipated decisions related to a major opioid settlement and the regulatory authorities of the Environmental Protection Agency (EPA) and the Securities and Exchange Commission (SEC). 

Sackler Settlement Thrown Out: In Harrington v. Purdue Pharma L.P., the court ruled 5-4 to reject a settlement agreement that would have shielded the Sackler family from liability over their company’s role in the opioid epidemic — and given billions of dollars to victims and their families. Writing for the majority, Justice Neil Gorsuch determined that a bankruptcy judge lacked the authority to shield the Sacklers from further litigation; Justice Brett Kavanaugh wrote a dissenting opinion joined by three other justices.  

SEC Adjudication Curbed: In SEC v. Jarkesy, the court’s six conservative justices determined that the SEC’s in-house adjudication and enforcement of laws against securities fraud violated 7th Amendment rights to a trial by jury. Some media voices have previously noted that the decision could impact other agencies’ regulatory authorities as well. Chief Justice John Roberts wrote the majority opinion, and Justice Sonia Sotomayor wrote a dissenting opinion joined by the other two liberal justices.

EPA Clean Air Plan on Hold: In Ohio v. Environmental Protection Agency, a 5-4 majority provisionally sided with states challenging an EPA plan to curtail air pollution traveling across state lines, placing the plan on hold for now. Justice Gorsuch wrote the majority opinion, and Justice Amy Coney Barrett wrote a dissenting opinion joined by three other justices.