Members of the Sackler family, known for their ownership of Purdue Pharma, have reached a revised settlement agreement worth up to $7.4 billion concerning lawsuits related to the opioid epidemic caused by their product, OxyContin. This announcement was made by attorneys general from various states on Thursday.
This new agreement replaces an earlier deal that the U.S. Supreme Court rejected last year. Under the terms of the new settlement, the Sackler family will contribute up to $6.5 billion, relinquishing their ownership of Purdue Pharma, which will also contribute almost $900 million. The family’s financial commitment has increased by $500 million compared to the prior settlement attempt.
This settlement is among the largest in the series of ongoing legal battles aimed at holding pharmaceutical companies accountable for their role in the opioid crisis. In addition to this agreement with Purdue, settlements totaling around $50 billion have also been announced, with stipulations that much of the funds be allocated toward addressing the crisis.
Although the settlement is a significant step forward, it still requires court approval, and some aspects of the deal remain to be finalized. Previously, the federal Department of Justice opposed the earlier settlement even after it was approved by each state and was subsequently taken to the U.S. Supreme Court. However, with the changes under the Trump administration, the federal government is not expected to contest this new agreement.
Purdue Pharma expressed satisfaction with the settlement in a statement, noting that it aims to provide billions to support victims, mitigate the opioid crisis, and supply lifesaving treatment. Representatives of the Sackler family have not yet responded to requests for comments regarding the new deal.
Kara Trainor, who has been in recovery from opioid addiction for 17 years, shared her positive view of the settlement, explaining how her life has been shaped by a company whose commercial interests overshadowed human lives. New York Attorney General Letitia James, a key negotiator in the talks, remarked that while no amount of financial restitution could mend the damage caused, this significant infusion of funds will help communities recover.
In West Virginia, which has borne the brunt of the opioid epidemic, Attorney General JB McCuskey voiced his support for the deal but criticized the actions of the Sackler family during the crisis. While most states are on board, Washington’s Attorney General Nick Brown stated that their office is reviewing the settlement before making a decision.
As part of the new agreement, members of the Sackler family will formally give up control of Purdue, having already distanced themselves from the board and ceased taking payouts prior to the company’s bankruptcy filing. Following the settlement, Purdue will transform into a new entity overseen by a board appointed by various stakeholders involved in the lawsuits.
Projected disbursements of between $800 million and $850 million are set aside for victims of the opioid crisis or their loved ones, alongside another $800 million reserved for potential future claims against the Sacklers. The previous agreement was blocked partly due to it shielding family members from civil lawsuits associated with OxyContin. The new arrangement allows for protections against lawsuits only from entities that agree to the terms of the settlement.
Should this recent proposal not receive approval, it could potentially lead to a flood of lawsuits targeting Sackler family members. A U.S. bankruptcy judge is anticipated to rule soon on whether to maintain temporary lawsuit protection for the family members through February.
Ultimately, this settlement may bring closure to a lengthy legal battle stemming from the opioid epidemic that many believe began with the introduction of OxyContin in 1996. Since that time, opioids have been linked to hundreds of thousands of fatalities across the United States, with the most devastating impacts occurring since 2020, influenced heavily by illicit fentanyl.
The Sackler family has faced intense public scrutiny, with their name being stripped from various cultural institutions due to the opioid crisis. Despite their substantial wealth, which surpasses the amounts they are contributing in the settlement, much of their fortune is believed to be held in offshore accounts that are difficult to target through legal action. Connecticut Attorney General William Tong clarified that the agreement is focused on holding the Sacklers accountable rather than leading to their financial destruction, highlighting that the goal is to aid families similarly affected by the opioid crisis.
Purdue Pharma filed for bankruptcy protection in 2019 as it confronted thousands of lawsuits accusing the company of misleading doctors about the risks linked to the addictive nature of its painkillers. Recently, one branch of the Sackler family has voiced intentions to defend against any lawsuits permitted to proceed, contending that the central legal claim—that their actions created a “public nuisance”—lacks merit.
