Purdue Pharma, Sackler family agree on historic settlement over OxyContin

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Lauren Taylor Anchor

By Lauren Taylor (Anchor), Kalé Carey (Reporter), Joey Nunez (Video Editor)

Purdue Pharma and the Sackler family have agreed to pay more than $7 billion to settle claims over their role in fueling the U.S. opioid epidemic. This settlement is the latest chapter in a legal battle over the company’s widely prescribed painkiller, OxyContin. Experts describe it as a gateway drug to harder substances like heroin.

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$7.4 billion settlement amid opioid crisis

The deal, which involves 15 states, comes after years of litigation and a 2024 U.S. Supreme Court ruling that blocked a previous agreement. The deal had proposed granting the Sackler family immunity from future lawsuits, a provision five of the justices found unacceptable.

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Since OxyContin’s launch in 1999, Purdue Pharma has marketed the drug as a safe pain management solution despite being aware of its highly addictive properties. This lack of transparency is cited as a key factor behind increased opioid overdose deaths in the U.S. over the past two decades.

Settlement details and impact

The Sackler family plans to contribute most of the settlement. That includes an initial payment of $1.5 billion and also additional payments over the next three years. Purdue Pharma, now bankrupt, will also contribute $900 million. The funds will be used to support opioid addiction treatment and prevention programs nationwide, addressing the ongoing crisis claiming thousands of lives each year.

“Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis,” said New York Attorney General Letitia James, who played a key role in securing the settlement. James worked alongside attorneys general from California, Colorado, Connecticut and 11 other states to bring the lawsuit to a close.

Purdue’s future and the Sacklers’ accountability

As part of the settlement, the Sacklers will lose ownership of Purdue Pharma as it enters bankruptcy proceedings. They will also be banned from selling opioids in the U.S.

While the settlement represents a significant financial commitment, the attorneys representing each state argue it can never truly compensate for the lives lost or the lasting impact of the opioid crisis.

Purdue expressed satisfaction with the new agreement. The company wrote in a statement, “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.”

The settlement is still subject to court approval. Once finalized, the funds will be distributed to victims and communities affected by the opioid crisis. The details of the distribution process are still being worked out.

Tags: addiction, attorney general, Drugs, heroin, New York, prescription drugs

[Lauren Taylor]

AN HISTORIC SETTLEMENT HAS BEEN REACHED BETWEEN A PHARMACEUTICAL COMPANY, ITS FOUNDERS, AND 15 STATES OVER ONE OF THE MOST WIDELY PRESCRIBED PAINKILLERS IN THE U.S.

PURDUE PHARMA AND THE SACKLER FAMILY AGREED ON PAYING OVER SEVEN BILLION DOLLARS FOR THEIR ROLE IN PROPELLING THE NATION’S OPIOID CRISIS THROUGH OXYCONTIN.

EXPERTS CALL THE ADDICTIVE OPIOID A GATEWAY TO HARDER DRUGS DELIVERING SIMILAR EFFECTS LIKE HEROIN.

SINCE ITS INTRODUCTION IN 1999, PURDUE PROMOTED OXYCONTIN AS A SAFE OPTION, EVEN THOUGH IT WAS AWARE OF ITS ADDICTIVE PROPERTIES AND WIDESPREAD ABUSE—CONTRIBUTING TO THOUSANDS OF OVERDOSE DEATHS EACH YEAR.

THE DEAL FOLLOWS A 2024 U.S. SUPREME COURT RULING BLOCKING A PREVIOUS AGREEMENT, WHICH WOULD HAVE GRANTED THE SACKLERS IMMUNITY FROM FUTURE LAWSUITS. THE COURT DECIDED THEY MUST ANSWER TO PUBLIC CLAIMS OVER THEIR ROLE IN THE OPIOID CRISIS.

COURT FILINGS CLAIM THE SACKLER FAMILY WITHDREW $11 BILLION FROM THE COMPANY BECAUSE OF THE LEGAL IMPLICATIONS THAT COULD ARISE–PUTTING THE MONEY IN OVERSEAS ACCOUNTS.

THE MAJORITY OF THE PAYOUT WILL COME FROM THE SACKLERS, ACCUSED OF PROFITING OFF AMERICANS’ ADDICTION. THEY’LL MAKE AN INITIAL PAYMENT OF $1.5 BILLION, WITH ADDITIONAL PAYMENTS SPREAD OVER THE NEXT THREE YEARS.

NEW YORK’S ATTORNEY GENERAL SAYS THE FUNDS WILL BE USED FOR TREATMENT AND PREVENTION PROGRAMS ACROSS THE COUNTRY, BUT ADDS IT CAN NEVER BRING BACK THE LIVES LOST TO OXYCONTIN.

“Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis.”

LETITIA JAMES WORKED WITH ATTORNEYS GENERAL FROM CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, FLORIDA AND TEN OTHER STATES TO SETTLE THE LAWSUIT.

PURDUE PHARMA RESPONDED TO THE SETTLEMENT SAYING: “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.”

THE LAWSUIT FORCES THE SACKLERS TO GIVE UP OWNERSHIP OF PURDUE, WHICH IS NOW BANKRUPT, AND BANS THEM FROM SELLING OPIOIDS IN THE U.S. A TRUSTEE WILL OVERSEE THE COMPANY AND DECIDE ITS NEXT STEPS.

STILL, THE AGREEMENT MUST BE APPROVED BY A JUDGE BEFORE THE MONEY IS DISTRIBUTED.

FOR STRAIGHT ARROW NEWS, I’M LAUREN TAYLOR