The devastating opioid crisis in America is poised to see a landmark settlement as Purdue Pharma and members of the Sackler family agree to pay up to $7.4 billion to resolve thousands of lawsuits. This enhanced deal, announced Thursday by New York Attorney General Letitia James, represents a significant increase from the previous $6 billion settlement that was rejected by the Supreme Court last year.
Breaking down the new settlement terms
The revised agreement requires the Sackler family to contribute up to $6.5 billion over 15 years, while Purdue Pharma will provide an additional $900 million. Under the terms, the Sacklers must relinquish ownership of Purdue Pharma, which will be transformed into a new entity governed by a board appointed by states and other plaintiffs in the lawsuits.
Unlike the previous settlement that was blocked by the Supreme Court, this new arrangement only protects Sackler family members from lawsuits filed by entities that agree to the settlement terms. The deal still requires court approval, and parties are requesting an extension of the current lawsuit prohibition through February to finalize details.
Impact on victims and crisis response
The settlement funds will be directed toward addressing the opioid crisis and compensating victims. One such victim, Kara Trainor, who became addicted to opioids after receiving an OxyContin prescription for a back injury, stated, “Everything in my life is shaped by a company that put profits over human lives.”
Purdue Pharma expressed optimism about the agreement, stating, “We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives.”
Historical context and ongoing crisis
The settlement addresses one chapter in the ongoing opioid crisis that many experts trace back to OxyContin’s market introduction in 1996. The crisis has reached unprecedented levels, with opioid-related deaths surging since 2020, particularly due to illicit fentanyl, which has been implicated in over 70,000 annual deaths.
The Sackler family, while maintaining their denial of wrongdoing, has faced significant public backlash, leading to their name being removed from numerous institutions worldwide. While their total wealth is believed to exceed their settlement contribution, much of their assets are held in offshore accounts, potentially beyond the reach of lawsuits.
This settlement joins other recent agreements totaling approximately $50 billion, with funds specifically designated to combat the ongoing opioid crisis. Fourteen state attorneys general, including those from California, Texas, and Massachusetts, have joined in securing this settlement in principle.
