Purdue Pharma, the manufacturer of OxyContin, has reached a groundbreaking $7.4 billion settlement approved by all 50 states, the District of Columbia, and U.S. territories concerning its marketing practices surrounding opioids.
Filed in federal bankruptcy court in March, this settlement comes after extensive negotiations involving state attorneys general and other concerned parties, with payouts structured to take place over the next 15 years.
New York’s Attorney General, Letitia James, emphasized the importance of the settlement, asserting that it holds the Sackler family accountable for their significant role in perpetuating the opioid addiction crisis that has led to countless overdoses.
As part of the agreement, members of the Sackler family, who hold ownership of Purdue Pharma, are anticipated to contribute approximately $6.5 billion.
In a notable shift from previous settlements, Purdue Pharma indicated that individuals wishing to pursue civil lawsuits against the Sacklers will retain the right to do so, provided they do not opt into the Sackler releases included in the plan.
Purdue Pharma described the approval from states and territories as a crucial milestone toward finalizing a deal that promises to channel billions into compensating victims, addressing the opioid crisis, and providing lifesaving medications for opioid use disorder and overdose rescue.
Despite the optimistic outlook from Purdue Pharma, the Sacklers continue to maintain that they have done nothing wrong.
NPR has sought a response from the Sackler family regarding the settlement but has not yet received any comments.
Attorneys involved in the litigation against Purdue Pharma and the Sacklers have expressed their approval of the recently finalized deal.
The National Prescription Opiate Litigation Plaintiffs’ Executive Committee released a joint statement reflecting their satisfaction with the unanimous agreement of all 55 eligible states and territories following years of complex litigation and bankruptcy proceedings.
They highlighted that the settlement will provide over $7 billion in necessary funding to support communities nationwide as they recover from the devastating effects of the opioid crisis.
However, not all stakeholders are convinced of the settlement’s adequacy.
Ryan Hampton, an advocate for addiction recovery and former OxyContin user, criticized the settlement, pointing out that it allocates only about $850 million in direct compensation for victims of Purdue Pharma.
Hampton expressed discontent with the amount, sharing that he estimates his own potential compensation to be around $3,500, which he feels is insufficient given the extensive and prolonged legal battle endured by victims.
Acknowledging the drawn-out process, Hampton remarked, “It is very little money… I’m ready to put it behind me and move on with my life.”
The settlement is now pending approval by a federal bankruptcy court, with experts suggesting that this arrangement is more likely to receive approval from both the courts and the U.S. Department of Justice.
The DOJ had previously challenged earlier iterations of the settlement, contributing to the U.S. Supreme Court’s decision to overturn a past agreement involving Purdue Pharma and the Sacklers in July 2024.
If finalized, this settlement would add to the more than $50 billion in payouts made by corporations that have profited from the production, distribution, and sale of opioid painkillers during a period marked by a surge in overdoses and drug-related fatalities in the U.S.
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