Purdue Pharma and the Sackler family have finalized a $7.4 billion settlement to address numerous lawsuits claiming that their drug, OxyContin, played a significant role in the U.S. opioid addiction crisis. State attorneys general announced this agreement on Thursday. This settlement follows a pivotal decision by the U.S. Supreme Court, which nullified Purdue's earlier bankruptcy settlement. The previous arrangement aimed to grant the Sacklers legal immunity from opioid-related lawsuits in return for a $6 billion contribution. However, the Court determined that the Sacklers were not entitled to such protections because they had not filed for bankruptcy themselves.
Under the new settlement terms, the Sacklers will provide $6.5 billion, supplemented by $900 million from Purdue. This agreement does not entirely prevent future lawsuits by states, local governments, or individuals. Those opting out of the settlement retain the right to pursue legal action against the Sacklers, who have committed to defending themselves in court. The negotiations were led by 15 states, including New York, California, and Texas. The settlement's approval depends on a U.S. bankruptcy judge. Connecticut Attorney General William Tong emphasized its significance for offering closure to victims of the opioid crisis, noting, "It's about more than just the money." This settlement is a crucial step in tackling a crisis responsible for over 700,000 opioid overdose deaths in the U.S. over the last two decades. It allocates $800 to $850 million specifically for individual victims, according to Ed Neiger, an attorney representing victims in the bankruptcy proceedings.
Purdue Pharma expressed satisfaction with the new agreement, highlighting its potential to provide billions in compensation and aid in the fight against the opioid crisis. This settlement is part of a broader initiative, with various drug companies collectively agreeing to approximately $50 billion in settlements to resolve similar claims. Purdue filed for bankruptcy in 2019 in response to thousands of lawsuits alleging that the company and the Sacklers exacerbated the opioid crisis through misleading marketing practices.
Purdue has previously pleaded guilty to misbranding and fraud charges related to OxyContin's marketing in 2007 and again in 2020. Although the Sacklers have denied any wrongdoing, they have expressed "regret" over the drug's contribution to the crisis. This settlement marks a significant advancement in the ongoing battle against the opioid epidemic, offering a pathway to justice and recovery for affected individuals and communities.
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