$7.4 billion Purdue Pharma opioid settlement backed by dozens of more states
Fifty-five attorneys general across the United States have come together to reach a monumental $7.4 billion settlement with Purdue Pharma and the Sackler family, the owners of the drugmaker, in relation to the devastating opioid crisis that has plagued the nation. This settlement, which was initially agreed upon by fifteen states in January, has now garnered the support of an additional 34 states, five territories, and Washington, D.C.
The agreement, if approved by the court, will effectively strip the Sackler family of their control over Purdue Pharma, the manufacturer of the highly addictive painkiller OxyContin, and prohibit them from selling opioids in the U.S. This marks a significant step towards holding accountable those who have contributed to the widespread opioid addiction and overdose epidemic that has ravaged communities nationwide.
New York Attorney General Letitia James expressed the gravity of the situation, stating, “For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses. While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis.”
The settlement will be disbursed over a span of 15 years, with over half of the funds allocated within the initial years. The Sacklers will make an initial payment of $1.5 billion, followed by Purdue Pharma’s payment of approximately $900 million. Subsequently, the Sacklers will contribute $500 million after one year, an additional $500 million after two years, and a final $400 million after three years.
Each state will receive a varying amount from the settlement, with California expecting up to $440 million, Colorado estimating around $75 million, New Jersey anticipating up to $124.5 million, and New York expecting up to $250 million. These funds are intended to compensate victims, address the opioid crisis, and provide opioid use disorder and overdose rescue medications to save lives.
Purdue Pharma has pledged that the settlement funds will be used for the intended purposes outlined in the agreement. The company expressed gratitude towards the state attorneys general and creditors for their efforts in reaching this pivotal agreement.
The settlement leaves Purdue Pharma under bankruptcy protection with supervision by a monitor, prohibiting the company from lobbying or marketing opioids. A board of trustees appointed by the states involved will oversee the company’s operations and determine its future trajectory.
This settlement comes after the previous Purdue bankruptcy settlement was overturned by the U.S. Supreme Court, ruling that the Sackler family could not be shielded from liability for civil claims related to the opioid epidemic. The original settlement would have required the Sacklers and Purdue to pay over $4.5 billion.
Overall, this landmark settlement signifies a significant step towards addressing the devastating impacts of the opioid crisis and holding accountable those responsible for perpetuating the epidemic.
