The Sackler family, owners of Purdue Pharma, the company that made OxyContin, will pay up to $7 billion to settle lawsuits related to the opioid crisis. A federal bankruptcy judge approved the deal, aiming to provide funds to address the crisis and compensate victims.
Most of the money will go to government programs designed to combat the opioid epidemic, which has caused an estimated 900,000 deaths since 1999. Some funds, roughly $850 million, are earmarked for individual victims, including children born with opioid withdrawal.
Judge Sean Lane stated the settlements are fair. The agreement replaces a previous one rejected by the Supreme Court because it improperly shielded the Sackler family from future lawsuits. This new deal allows entities that don’t agree to the settlement to still sue the family.
This settlement is one of the largest in a series of agreements with drugmakers, wholesalers, and pharmacies, totaling about $50 billion. These actions underscore the importance of accountability and responsibility in the pharmaceutical industry and will help local communities who need fund to recovery.
The judge approved the deal because it maximizes the settlement value and comes after years of investigations and negotiations. Suing the Sackler family could take years, and success wouldn’t be guaranteed, especially since their assets are largely in offshore trusts.
To receive individual payments, those affected must prove they were prescribed OxyContin. Payments could range from $8,000 to $16,000, depending on the length of the prescription and the number of eligible people.
The Sackler family will give up ownership of Purdue, which will be replaced by a new company, Knoa Pharma, controlled by a board appointed by states. The company will focus on public benefit. The Sacklers have also agreed not to have their name displayed on institutions in exchange for donations.
Purdue filed for bankruptcy in 2019 in response to numerous opioid-related lawsuits. A previous settlement was rejected by the Supreme Court because it protected the Sackler family from lawsuits without them declaring bankruptcy. The new plan allows lawsuits against family members who don’t opt into the deal.
