Purdue Pharma, the maker of OxyContin, and the Sackler family, which owns the company, have agreed to a $7.4 billion settlement to resolve thousands of lawsuits alleging their role in the opioid crisis. The deal is among the largest settlements ever reached in cases related to the epidemic.
Members of the family who own OxyContin maker Purdue Pharma , and the company itself, agreed to pay up to $7.4 billion in a new settlement to lawsuits over the toll of the powerful prescription painkiller, New York Attorney General Letitia James announced Thursday.
The agreement, which represents an increase of more than $1 billion over a previous settlement deal, was reached between members who own the company and lawyers representing state and local governments and thousands of victims of the opioid crisis. The Sacklers agreed to pay up to $6.5 billion, Purdue to pay $900 million, for a total of $7.4 billion. It's among the largest settlements reached over the past several years in a series of lawsuits by local, state, Native American tribal governments and others seeking to hold companies responsible for a deadly epidemic. Aside from the Purdue deal, others worth around $50 billion have been announced — and most of the money is required to be used to stem the crisis. The deal still needs court approval, and some of the details are yet to be ironed out. An arm of the federal Department of Justice opposed the previous settlement, even after every state got on board, and took the battle to the U.S. Supreme Court. But under President Donald Trump, the federal government is not expected to oppose the new deal. \'We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives,' Stamford, Connecticut-based Purdue said in a statement. Kara Trainor, a Michigan woman in recovery for 17 years, said she became addicted to opioids after receiving a prescription for OxyContin to deal with a back injury 23 years ago, praised the deal. Joining Attorney General James in securing the settlement in principle are the attorneys general of California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia. Under the new proposal, members of the Sackler family would contribute up to $6.5 billion over 15 years and give up ownership of Purdue, which would become a new entity with its board appointed by states and others who sued the company. Purdue is to pay $900 million. A portion of the money is also to go to victims of the opioid crisis or their survivors. The family's contribution will be higher than the $6 billion agreed to under the previous version. The Supreme Court blocked the agreement last year because it protected members of the wealthy family from civil lawsuits over OxyContin — even though the family members themselves were not in bankruptcy. The new agreement protects family members from lawsuits only from entities that agree to the settlement. There's been mediation seeking a new deal since the court's ruling was delivered. If one is not reached, it could open the floodgates to lawsuits against Sackler family members. A court order blocking lawsuits against Sackler family members is set to expire Friday, but the parties are asking a U.S. Bankruptcy Court judge to keep that in place through February to iron out the final details. The deadline has already been extended several times. A few governments, including the states of Maryland and Washington, have routinely opposed the extensions. \The new settlement could bring to a close a chapter in a long legal saga over the toll of an opioid crisis that some experts assert began after the blockbuster painkiller OxyContin hit the market in 1996. Since then, opioids have been linked to hundreds of thousands of deaths in the U.S. The deadliest stretch has been since 2020, when illicit fentanyl has been found as a factor in more than 70,000 deaths annually. Members of the Sackler family been cast as villains and have seen their name removed from art galleries and universities around the world because of their role in the privately held company. They've continued to deny claims of any wrongdoing. Collectively, family members have been estimated to be worth billions more than they'd contribute in the settlement, but much of the wealth is in offshore accounts and might be impossible to access through lawsuits. Purdue sought bankruptcy protection in 2019 as it faced thousands of lawsuits over the opioid crisis. Among the claims are that the company targeted doctors with a message that the addiction risk to the powerful painkillers was low. In an October 2024 filing, one branch of the family pledged to defend itself in any cases that are allowed to move ahead, saying that the legal theory at the heart of the lawsuits — that Purdue and Sackler family members created a 'public nuisance' — 'is utterly devoid of merits.
OPIOID CRISIS PURDUE PHARMA SACKLER FAMILY OXYCONTIN LAWSUITS SETTLEMENT JUSTICE HEALTH
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