The Supreme Court on Thursday blocked Purdue Pharma from moving forward with bankruptcy proceedings in a win for the Biden administration, which has challenged the $6 billion settlement involving the company for allegedly providing "unprecedented" protection from future civil suits.

By agreeing to pause the settlement, the court said it would take up the case and hear oral arguments in December.

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The case stems from the reorganization in bankruptcy of OxyContin manufacturer Purdue, arising from ongoing lawsuits over claims of its role in fueling the opioid addiction epidemic.

The high court told parties to file briefs on a question over whether the bankruptcy courts can greenlight a Chapter 11 reorganization that releases claims by non-debtors against not-debtor third parties "without claimants' consent."

In May, Purdue reached a settlement with eight states and the District of Columbia. The value of the settlement could ultimately amount to more than $10 billion. U.S. Solicitor General Elizabeth Prelogar argued in court papers that the bankruptcy protection could amount to an "exceptional and unprecedented" release from liability.

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Under the deal, the Sackler family agreed to relinquish control of the Connecticut-based company.

The stay of the settlement will be lifted after the court's ruling, which is likely sometime before June 2024.