Sacklers, Purdue Pharma Reach $7.4B Settlement in Opioid Crisis

livewell
January 24, 2025
Noah Bennett

Purdue Pharma, the company developing highly addictive painkiller oxycontin, and the Sackler family agreed to a $7.4 billion settlement. This involved a group of states from both parties. Moreover, New York Attorney General Letitia James announced the agreement on Thursday. She further resolved claims that contributed to the opioid crisis.

According to sources the Oxycontin settlement was rejected earlier by the US Supreme Court. The settlement of $6.5 billion was to be made from the Sackler family. Purdue was also to contribute as much as $900 million. Additionally, this provision is not part of the new deal.

Further Settlements

A significant settlement of $3 billion will come from the Sackler family lawsuits. It will be paid out within the first few years. Additionally, payments will begin with an initial installment of $1.5 billion, followed by additional payments of $500 million. Moreover, after two years, they will make another $500 million payment, followed by the final $400 million after three years.

The Opioid epidemic settlements do not end here. Over the next 15 years, the settlement money will fund programs across the country that focus on further treatments. Opioid addiction, prevention, and supporting recovery are a few to name. Furthermore, statements from James also came forward on the Opiod epidemic settlement:

“Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis.”

She further stated:

“The Sacklers no longer have control of Purdue and will never be allowed to sell opioids in the United States again.”

Effects on Purdue Pharma

As a result of the deal, Purdue Pharma bankruptcy will be monitored and the company will be prohibited from lobbying or marketing opioids. A board of trustees, appointed by the states involved in the settlement, will supervise the company and decide its future. In addition, a statement of the Supreme Court opioid decision on June 2024 regarding the previous Purdue bankruptcy was also struck down. The decision determined that the Sackler family members would not be shielded from liability for civil claims related to the opioid epidemic.

Attorney General’s Decision and the After Effects

Attorney General James negotiated the settlement alongside her counterparts from 14 other states (California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia), securing up to $250 million for opioid treatment and recovery programs in New York. In addition, the Sackler family has been widely criticized. They are facing consequences such as the removal of their name from institutions due to their involvement with Purdue Pharma. Despite this, they maintain their innocence but have agreed to the financial terms.