In a significant development in the ongoing battle against the opioid crisis, all 50 states, along with the District of Columbia and U.S. territories, have reached a historic agreement for a $7.4 billion settlement with Purdue Pharma, the manufacturer of OxyContin. This settlement addresses the company's improper marketing practices related to opioids, which have contributed to widespread addiction and overdose deaths across the nation.
The details of the settlement were formally filed with a federal bankruptcy court by Purdue Pharma officials in March, following extensive negotiations with state attorneys general and various stakeholders. If finalized, this agreement will result in payouts distributed over the next 15 years, aimed at assisting communities grappling with the devastating impacts of the opioid epidemic.
New York's Attorney General, Letitia James, has been vocal about the need for accountability, stating that the settlement plan will hold the Sackler family responsible for their pivotal role in exacerbating the opioid crisis. Under the proposed settlement terms, the Sackler family is expected to contribute up to $7 billion towards this settlement. Notably, a key change in this settlement allows individuals wishing to sue the Sacklers for alleged wrongdoing to retain their rights to do so, provided they do not opt into the Sackler releases outlined in the plan.
Despite the serious allegations against them, the Sackler family has consistently maintained that they have done nothing wrong. NPR has reached out for comments from family members but has yet to receive a response. Meanwhile, attorneys representing plaintiffs in lawsuits against Purdue Pharma and the Sacklers have expressed their satisfaction with the settlement. In a joint statement, they acknowledged the agreement as a culmination of five years of litigation and three years in bankruptcy, emphasizing that the unanimous acceptance by all 55 eligible states and territories marks a significant step forward.
The attorneys highlighted that this settlement is expected to inject over $7 billion in essential funds into communities across the United States that are striving to recover from the opioid crisis. However, this settlement still requires approval from a federal bankruptcy court. Experts believe that this version of the deal is likely to receive backing from both the courts and the U.S. Justice Department.
It is important to note that earlier attempts at settlement faced challenges from the Department of Justice's bankruptcy watchdog agency, which played a role in the U.S. Supreme Court's decision in July 2024 to overturn a prior bankruptcy deal involving Purdue Pharma and the Sacklers. Should this settlement be finalized, it will contribute to over $50 billion in opioid-related payouts from corporations that benefitted from the manufacture, distribution, and retail of opioid painkillers during a time when drug overdoses and fatalities were surging in the United States.
