All 50 U.S. states, Washington, D.C., and four U.S. territories have agreed to a $7.4 billion settlement with Purdue Pharma, the company behind OxyContin. The states argued the Sackler family, who own Purdue Pharma, fueled the opioid epidemic by aggressively marketing the addictive drug.
Purdue Pharma lawsuit
The agreement, signed by 55 attorneys general, ends years of legal battles dating back to 2018 when six states first sued Purdue Pharma and the Sackler family. The lawsuits accused the Sacklers of aggressively marketing OxyContin despite its addictive potential.
As part of the new deal, the Sackler family will relinquish ownership of Purdue Pharma. They are also permanently barred from manufacturing, selling or marketing opioids in the United States.
California Attorney General Rob Bonta praised the settlement for providing accountability and help for people with an addiction.
“By holding Purdue Pharma and the Sackler family accountable for their role in fueling the opioid epidemic, we’re bringing much-needed funds for addiction treatment, prevention, and recovery to those impacted by this crisis,” he said in a news release.
The money will go to supporting opioid addiction treatment, prevention, and recovery programs, as well as some victims. Purdue Pharma’s future will be determined by a board of trustees selected by participating states. The company will still be prevented from lobbying or marketing opioids.
This settlement will have to be approved by a federal bankruptcy court. In 2024, the Supreme Court rejected a $6 billion Purdue Pharma bankruptcy deal. It would have protected the Sackler family if Purdue Pharma had filed for bankruptcy.
The court ruled the bankruptcy code does not authorize courts to shield third parties, like the Sacklers, from lawsuits without creditor consent. Purdue then filed the new plan for the $7.4 billion back in March.
“We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good,” Purdue Board Chairman Steve Miller said following the filing.
If the bankruptcy court approves, local governments across the country will be asked to join the settlement. There will be a hearing for local officials on Wednesday, June 16.
The Sacklers continue to maintain they did nothing wrong.
Opioid epidemic
The opioid epidemic is often said to have come in three waves, beginning in the 1990s with increasing overdose deaths from prescription opioids like OxyContin. The second wave began around 2010, with people struggling to get prescriptions and turning to heroin.
The third wave began around 2013 with significant increases in overdose deaths from synthetic opioids such as fentanyl.
From 1999 to 2022, nearly 727,000 people have died from opioid overdoses.
