On Thursday, New York Attorney General Letitia James revealed a landmark settlement of $7.5 billion linked to Purdue Pharma and the Sackler Family, aimed at addressing their role in the persistent opioid crisis plaguing the United States.
This settlement will provide much-needed financial relief to individuals, tribal nations, and states involved in the lawsuit.
This Latest Agreement
This latest agreement comes as a second attempt, following the U.S. Supreme Court’s decision in June 2024, which overturned a previous settlement.
The narrow 5-4 ruling rejected a controversial clause that granted the Sacklers immunity from future lawsuits, leading both sides to restart negotiations.
The new proposal replaces the rejected immunity with mutual releases tied to financial terms, offering a more comprehensive solution.
The Role of Purdue Pharma
Purdue Pharma has faced a wave of lawsuits tied to its aggressive marketing of OxyContin, promoting the drug as a safe, non-addictive option during the late 1990s.
Financial details reveal that, from 1996 to 2019, Purdue raked in around $34 billion in profits through strategies that encouraged widespread prescribing by healthcare providers.
In 2007, Purdue admitted to misleading the public about OxyContin’s potential for addiction, triggering a barrage of civil actions against the company.
By 2019, as Purdue filed for bankruptcy in a bid to tackle the mounting lawsuits, the Sackler family stepped down from the company’s board in exchange for safeguarding their personal wealth.
Details of the Settlement
As part of the latest settlement, the Sackler family will give up their ownership of Purdue Pharma, and the company will be banned from distributing opioids in the U.S. Attorney General James emphasized that while no amount of money can undo the harm inflicted by the opioid epidemic, this agreement aims to provide essential resources for communities grappling with addiction and recovery.
She also criticized the Sackler family’s relentless pursuit of profit, which played a significant role in both igniting and worsening the opioid crisis.
This financial settlement is designed to aid in the healing of communities affected by the devastating consequences of opioid misuse.
Disbursement of this proposed settlement will occur over time, with plans to allocate around $2.5 billion within the first three years.
However, the proposal is still subject to court approval and is tied to the bankruptcy proceedings Purdue initiated in 2019.
Source: Jurist