Fri Jan 24 01:59:24 IST 2025: **Purdue Pharma and Sackler Family to Pay $7.4 Billion to Settle Opioid Lawsuits**
NEW YORK – Purdue Pharma, the maker of OxyContin, and members of the Sackler family, its owners, have agreed to a landmark $7.4 billion settlement to resolve thousands of lawsuits stemming from the opioid crisis. The agreement, announced Thursday by New York Attorney General Letitia James, surpasses a previous $6.4 billion settlement rejected by the Supreme Court last year by more than $1 billion.
The settlement includes up to $6.5 billion from the Sackler family, paid over 15 years, and $900 million from Purdue Pharma itself. As part of the deal, the Sacklers will relinquish ownership of Purdue, which will be restructured under a new board appointed by states and other plaintiffs. Crucially, this settlement offers the Sacklers protection from lawsuits only from entities participating in the agreement, unlike the previous version that sparked Supreme Court intervention.
The deal, which requires court approval and still has some details to finalize, is one of the largest settlements in the ongoing legal battles against opioid manufacturers. It follows approximately $50 billion in other settlements already reached, with most funds earmarked for combating the opioid crisis. While the US Department of Justice opposed the previous settlement, under the current administration, opposition is not anticipated.
The settlement has garnered mixed reactions. While victims like Michigan resident Kara Trainor, a 17-year recovery veteran, hailed the agreement as a step towards justice, some states, such as Maryland and Washington, have historically opposed similar extensions in the legal process. The Sackler family, who maintain their innocence, have faced significant reputational damage, with their name being removed from various institutions globally.
The agreement, if finalized, will conclude a long legal struggle that began after OxyContin’s launch in 1996. Opioids have since been linked to hundreds of thousands of overdose deaths in the U.S., with the situation worsening since 2020 due to the prevalence of fentanyl. The massive settlement aims to provide compensation to victims, fund addiction treatment programs, and supply overdose-reversing medications. A court order temporarily blocking lawsuits against the Sacklers has been extended until February to allow final details to be worked out.
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