Purdue Pharma and the Sackler family owners have agreed to a substantial $7.4 billion settlement to resolve thousands of lawsuits related to the opioid crisis in the United States. The lawsuits accused the company and its owners of fueling the widespread addiction crisis through deceptive marketing of OxyContin. The settlement was announced by state attorneys general on Thursday.
New Settlement Follows Supreme Court Ruling
This new agreement comes after the U.S. Supreme Court overturned a previous bankruptcy settlement attempt by Purdue Pharma. The earlier plan would have granted the Sackler family immunity from future lawsuits in exchange for a payment of up to $6 billion. However, the Supreme Court ruled that the Sacklers, who did not personally file for bankruptcy, were not entitled to protections reserved for bankrupt debtors seeking a fresh start.
Terms of the Settlement
Under the revised settlement terms, the Sackler family will pay $6.5 billion, while Purdue Pharma will contribute an additional $900 million. This settlement addresses claims from states, local governments, and individual victims of the opioid crisis. However, those who choose not to participate in the settlement are still free to pursue lawsuits against the Sacklers.
Approval Pending and Distribution of Funds
The settlement was negotiated by 15 states, including New York, California, Connecticut, and West Virginia, and will require approval from a U.S. bankruptcy judge before it can be finalized. Once approved, the funds will be distributed to address the opioid epidemic, including compensation for individual victims. An estimated $800 million to $850 million is set aside to help these victims.