The US Court of Appeals for the Second Circuit ruled on Tuesday that the Sackler family, owners of Purdue Pharma, shall be granted immunity from current and future civil legal claims in exchange for a $6 billion settlement. This settlement will go towards efforts to help those suffering from opioid addiction. The Sackler family will also be required to give up ownership of Purdue as a part of the settlement.
In a statement released by Purdue Chairman Steve Miller, he deemed the ruling a victory and stated their focus is “to emerge from bankruptcy and deliver billions of dollars of value for victim compensation, opioid crisis abatement, and overdose rescue medicines.”
Purdue and the Sackler family have been blamed for significantly contributing to the opioid epidemic by producing OxyContin. Both Purdue and the Sacklers have faced numerous lawsuits from private individuals as well as the Department of Justice. When Purdue filed for bankruptcy in 2019, almost 3,000 lawsuits against Purdue and 400 actions against the Sacklers were halted. These claims were estimated at more than $40 trillion.
The Sackler family is not protected from and can still face criminal charges. The settlement has yet to receive final approval from a court. Purdue Pharma will now become Knoa Pharma, which will be owned by a trust that will fund opioid crisis reduction efforts and will have no affiliation with the Sackler family.