New York Attorney General Letitia James announced Thursday a new $7.5 billion settlement with Purdue Pharmaceuticals and the Sackler Family for their role in the ongoing US opioid crisis, with the funds to be distributed among the individuals, tribal governments, and the states who participated in the suit.
It is the second time a settlement has been reached between plaintiffs in the suit and Purdue after a prior settlement was overturned by the US Supreme Court in June 2024. A provision that would have shielded the Sackler’s from further liability in cases related to the opioid crisis fueled the 5-4 decision that sent both sides back to the negotiating table. This time, the deal includes “consensual releases in exchange for payments” instead of the blanket immunity for the family prohibited by the court.
The settlement stems from a multitude of cases filed against the company for its role in promoting highly addictive opioid OxyContin as a safe, non-addictive wonder drug in the late 1990s. According to court documents Purdue raked in nearly $34 billion in profits from 1996 to 2019 while pursuing an aggressive sales strategy that encouraged care providers to prescribe the drug.
In 2007, Purdue admitted to mislabeling the drug as non-addictive in a plea that opened them up to liability in a cavalcade of civil suits. In 2019, the Sacklers stepped down from the Purdue board of directors in exchange for indemnification to protect their personal assets. Bankruptcy and attempts to settle the numerous claims against the pharmaceutical giant soon followed.
The newest settlement requires the Sackler Family to give up their ownership interest in Purdue Pharmaceuticals and bans the company from selling opioids in the US. Attorney Letitia James stressed the inadequacy of the money settlement to remedy the human toll that the drug epidemic has caused but stressed that money from the settlement would be used to help repair communities ravaged by opioids.
The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling the opioid epidemic. While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal. The Sacklers no longer have control of Purdue and will never be allowed to sell opioids in the United States again.
The settlement will be paid out in installments with nearly $2.5 billion scheduled to be distributed in the first three years. The deal now awaits court approval tied to the companies 2019 bankruptcy filing.
