Purdue Pharma and Sackler Family Agree to $7.4 Billion Settlement Over OxyContin Crisis

Purdue Pharma, the company responsible for the highly addictive opioid OxyContin, along with the Sackler family, has made a commitment to pay $7.4 billion to various individuals and entities impacted by their role in the opioid epidemic. This announcement came from 15 state attorneys general, including Letitia James from New York, just months after the U.S. Supreme Court invalidated a prior settlement arrangement.

The financial terms of this new settlement include an immediate payment of $900 million from Purdue Pharma, while the Sackler family will contribute $6.5 billion distributed over the next 15 years, which is an increase of $500 million from the previous agreement. Notably, this settlement removes the previously contentious provision that shielded the Sackler family from civil lawsuits, which the Supreme Court found to be in violation of bankruptcy regulations. Furthermore, the Sacklers may allocate up to $800 million into a designated account solely for defending against legal claims.

Attorney General Letitia James stated that the Sackler family sought profits at the cost of patients' safety, significantly contributing to the opioid crisis. She emphasized that although no financial settlement could fully rectify the devastation caused by their actions, the new funds would provide essential resources for communities affected by the crisis, aiding in recovery and healing efforts.

If the settlement is finalized, it would lead to the Sackler family's exit from Purdue Pharma and halt their ability to sell opioids in the United States. The funds will specifically support addiction treatment and preventive measures nationwide over a 15-year period. Purdue Pharma expressed satisfaction over the agreement, highlighting its potential to provide vast compensation to victims while addressing the opioid crisis through treatment options.

The opioid epidemic has significantly impacted millions in the U.S., with the CDC reporting over 280,000 deaths linked to prescription opioid overdoses from 1999 to 2021. OxyContin, which was introduced by Purdue Pharma in 1996, was falsely marketed as a non-addictive solution for pain relief, leading to a surge in overdoses, particularly as the availability of more affordable alternatives like heroin increased over time. Purdue Pharma's previous misrepresentation of OxyContin resulted in a guilty plea in 2007 and a $600 million fine, after which numerous lawsuits from various stakeholders emerged against the company and the Sackler family.