Purdue Pharma, along with the Sackler family, has agreed to pay $7.4 billion to resolve claims related to their role in the opioid epidemic.
The settlement, announced by New York Attorney General Letitia James, involves 15 states and is one of the largest settlements ever reached in the opioid litigation.
Sacklers Agree to Pay $6.5 Billion in Purdue Pharma Opioid Settlement
The deal includes a provision that removes the Sackler family from Purdue Pharma's control and prevents them from selling opioids in the United States.
As part of the agreement, the Sacklers will contribute $6.5 billion over the next 15 years, while Purdue will pay nearly $900 million upfront, pending court approval, BBC said.
More than half of the total settlement will be paid in the first few years, including substantial early payments from the Sacklers.
These funds will be allocated to support opioid addiction treatment, recovery programs, and prevention efforts across the country.
While the settlement acknowledges the damage caused by Purdue's promotion of OxyContin, the opioid painkiller, it does not offer full closure.
The Supreme Court had previously rejected a settlement that granted the Sackler family immunity from future lawsuits, a provision now removed from the current deal.
This agreement now provides a significant financial commitment to helping address the opioid crisis while leaving the Sacklers accountable for their actions.
Purdue to Remain in Bankruptcy, Oversight Ensured Under $7.4 Billion Opioid Settlement
The opioid epidemic, which has resulted in tens of thousands of overdose deaths each year, was significantly fueled by Purdue's aggressive marketing of OxyContin.
Despite knowing about its potential for addiction, the company continued to push the drug, leading to widespread abuse.
The Sackler family, which controlled Purdue, profited immensely, withdrawing billions of dollars before Purdue declared bankruptcy.
Under the new settlement, Purdue will remain in bankruptcy with oversight by an appointed monitor.
It will also be prohibited from marketing opioids or lobbying, and the future of the company will be determined by a trustee board selected by the states involved in the settlement.
The settlement has been welcomed by many advocates for opioid victims, although some feel it does not fully compensate for the losses caused by the epidemic.
For example, Cheryl Juaire, a mother who lost two sons to opioid addiction, expressed relief but also pointed out that no amount of money could erase the pain caused by the crisis, CBS News said.
