Purdue Pharma, Sackler Family To Pay $7.4 Billion In Settlement Over OxyContin That Fueled 'Devastating' Opioid Epidemic

The Sackler family and Purdue Pharma have agreed to pay $7.4 billion to resolve nationwide opioid litigation, marking a major milestone in efforts to hold the makers of the addictive pain medication OxyContin accountable for their role in the opioid crisis. This increased settlement, announced Thursday, follows the U.S. Supreme Court's June 2024 rejection of a prior deal and, if approved, will conclude the most expensive corporate bankruptcy tied to the opioid epidemic, which has claimed at least 106,000 lives in the U.S.

What Happened: Purdue Pharma developed and aggressively marketed OxyContin starting in the 1990s via medical sales reps whose job was to convince doctors to prescribe more of their drug. Inappropriate prescribing of opioids was given as one of the major causes of U.S. overdoses, according to the office of Dept. of Health and Human Services.

"This story is about a family of cruel billionaires who believed they were above the law," said Connecticut Attorney General William Tong in a press release. "Today, we're forcing Purdue and the Sackler family to pay for their role in one of the most devastating public health crises in American history."

Numerous U.S. states have sued Purdue Pharma for its aggressive marketing and for downplaying OxyContin’s addictiveness. Purdue essentially responded by declaring bankruptcy in 2019.

Under the new terms, per Tong's press release, Purdue Pharma will cease to operate under Sackler control. Over the next 15 years, $7.4 billion will be distributed to communities across the U.S. for opioid addiction treatment, prevention and recovery initiatives. Notably, the Sackler family will no longer be shielded from future lawsuits, a demand they previously insisted upon in earlier agreements.

Relentless Pursuit Of Profit

“Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis,” said New York Attorney General Letitia James, whose office helped negotiate the settlement agreement, reported ABC News.

“The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling in the opioid epidemic,” she continued. “While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal.”

Purdue Pharma's earlier settlement plan included a $6 billion contribution from the Sacklers in exchange for immunity from all civil opioid claims, even though the family itself did not file for bankruptcy. The Supreme Court struck down that arrangement, asserting that the Sacklers could not use the company's bankruptcy to shield themselves from liability.

A board of trustees will oversee Purdue’s future operations, ensuring it remains barred from opioid marketing or lobbying, noted Tong.

Purdue Pharma expressed satisfaction with the new settlement, in a statement to ABC News. The company said it will provide resources to combat the opioid epidemic and save lives.

Now Read:

• Pharmacy Benefit Managers Played Key Role in Worsening Opioid Crisis, Drug Makers Paid Staggering Rebates To Middlemen: NYT

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