After years of legal battles, the Sackler family will finally pay $7.4 billion for their role in fueling America’s devastating opioid epidemic while losing control of Purdue Pharma forever.
Key Takeaways
- A historic $7.4 billion settlement with Purdue Pharma and the Sackler family has been unanimously approved by all 50 states, Washington D.C., and four U.S. territories.
- The settlement permanently ends the Sackler family’s control of Purdue Pharma and prohibits them from selling opioids in the United States.
- Settlement funds will be distributed over 15 years with most payments coming in the first three years, directing billions toward addiction treatment, prevention, and recovery programs.
- Unlike previous overturned settlements, this agreement does not shield the Sacklers from future civil lawsuits, allowing victims to pursue additional legal action.
- The deal follows multiple failed attempts at settlement, including a $6 billion agreement that was struck down by the Supreme Court.
Justice After Multiple Failed Settlements
After years of legal wrangling and two overturned settlement attempts, all 50 states, Washington D.C., and four U.S. territories have unanimously agreed to a $7.4 billion settlement with Purdue Pharma and the Sackler family. The landmark agreement comes after the Supreme Court overturned previous bankruptcy plans that would have shielded the Sacklers from civil liability. Under the new settlement terms, the Sackler family will make an initial payment of $1.5 billion, with Purdue Pharma contributing approximately $900 million, and the family will ultimately pay around $6.5 billion of the total settlement.
Unlike previous failed settlement attempts, this agreement does not require victims to forfeit their rights to sue the Sacklers in civil court. This crucial change addresses a major point of contention that led to the Supreme Court’s rejection of earlier proposals. The agreement also permanently ends the Sackler family’s control of Purdue Pharma and prohibits them from selling opioids in the United States going forward. Despite the settlement, the Sacklers have maintained they did nothing wrong in their role in the opioid crisis that has devastated communities across America.
How The Settlement Funds Will Be Used
The $7.4 billion settlement funds will be distributed over 15 years, with most allocations to states coming within the first three years. These funds will directly support opioid addiction treatment, prevention, and recovery programs across the nation. Only about $850 million has been designated to compensate direct victims of the opioid crisis, an amount some advocates criticize as insufficient given the scale of suffering. This settlement adds to over $50 billion in total payouts related to the opioid crisis from various corporations involved in manufacturing and distributing opioid painkillers.
“While we know that no amount of money can erase the pain for those who lost loved ones to this crisis, this settlement will help prevent future tragedies through education, prevention, and other resources,” said New Jersey Attorney General Matthew Platkin.
The settlement represents a turning point in the legal battle against Purdue Pharma, which filed for bankruptcy in 2019 after facing thousands of lawsuits over its aggressive marketing of OxyContin and other opioids. A board of trustees will determine Purdue’s future, and the company will be closely monitored to prevent lobbying or marketing of opioids. The staggering human cost of the opioid crisis is reflected in statistics showing each case of opioid use disorder costs nearly $700,000, underscoring the need for substantial funding to address the epidemic.
State Officials React to the Settlement
State attorneys general across the country have expressed mixed emotions about the settlement, acknowledging both its historic significance and its limitations in truly compensating for the devastation caused by the opioid crisis. The settlement marks the culmination of years of legal battles that reached all the way to the Supreme Court. With every state and territory on board, the settlement can now move forward through the bankruptcy court process, where Purdue filed a new bankruptcy plan in March to facilitate the agreement.
“As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products. This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth. My office will continue engagement with municipal leaders to ensure millions of dollars reach every corner of the state,” said Pennsylvania Attorney General Dave Sunday.
Connecticut Attorney General William Tong offered a sobering perspective on the settlement: “There will never be enough justice, accountability, or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family’s craven misconduct. What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles up to the U.S. Supreme Court.” This sentiment reflects the complex reality that while the settlement provides crucial resources, it cannot fully repair the damage done to countless American families.
Purdue Pharma described the approval as a “critical milestone” in providing compensation and addressing the opioid crisis, though their statement notably lacks any acknowledgment of wrongdoing. The company will now operate under strict oversight, with its future operations determined by a trustee board rather than the Sackler family, who profited immensely from America’s addiction crisis.
