In a historic Purdue Pharma settlement, the Sackler family, the owners of Purdue Pharma, the company that makes the highly addictive drug OxyContin, has agreed to pay up to $7.4 billion to resolve disputes related to the opioid epidemic. This settlement, one of the biggest of its type, will settle lawsuits against Purdue and the Sackler family brought by state and municipal governments, thousands of opioid epidemic victims, and others.
The agreement called for the $7.4 billion to be contributed over 15 years by the Sackler family. They would also give up control of Purdue Pharma, which they previously owned. With a board chosen by the states and other plaintiffs who had filed lawsuits against the firm, Purdue would transform into a new organization. Although the settlement still needs court approval, it settles continuing litigation against Purdue Pharma and is a major step in resolving the destruction created by the opioid crisis.
How Will the Purdue Pharma Settlement Funds Be Allocated?
State and municipal governments, opioid crisis victims, and their survivors will all receive money from the Purdue Pharma deal. The funds will be used to fight the ongoing public health disaster that has killed hundreds of thousands of Americans and continues to cripple communities all over the nation.
The Connecticut Attorney General stated, “Today, we are requiring Purdue Pharma and the Sackler family to pay $7.4 billion for their part in starting one of the most catastrophic public health emergencies in American history.” “The plot revolves around a family of ruthless billionaires who thought they were above the law and were being hunted down by states that never gave up.”
What Role Did Purdue Pharma Play in the Opioid Crisis?
In 2019, Purdue Pharma, which created and patented OxyContin in 1996, filed for bankruptcy due to the growing number of lawsuits it was receiving from states, municipal governments, and private citizens about the opioid crisis. Among the accusations were that Purdue misled physicians about OxyContin’s potential for addiction, resulting in widespread abuse and addiction.
Addiction and overdose mortality have increased nationwide as a result of the opioid epidemic, which has been connected to the popularity of OxyContin. Numerous experts say that the introduction of OxyContin to the market marked the start of the problem, and since then, hundreds of thousands of deaths have been linked to opioids. The emergence of illegal fentanyl, which causes over 70,000 deaths a year, has coincided with the bloodiest time of the epidemic in previous years.
How Was the Purdue Pharma Settlement Reached After Legal Challenges?
Following a court loss for Purdue Pharma and the Sackler family, news of this settlement was released. A $6 billion settlement agreement was invalidated by the U.S. Supreme Court last year because it shielded the Sackler family from civil litigation pertaining to their involvement in the opioid crisis. Due to their role in the opioid crisis, the family has been under increasing scrutiny; many have accused them of prioritizing profits before public health.
Approximately $50 billion has been settled in recent years as a result of more than 100 lawsuits brought against pharmaceutical companies, wholesalers, and pharmacies. Yet, the Sackler family’s stake in the most recent settlement represents one of the biggest one-off payments in the history of these court cases. An important turning point in this ongoing legal dispute is the Purdue Pharma deal.
Which Sackler Family Members Are Involved in the Purdue Pharma Settlement?
The estates of Jonathan and Beverly Sackler, together with Richard, Kathe, Mortimer Jr., Ilene, David, and Theresa Sackler, are among the Sackler family members participating in the Purdue Pharma settlement. The Sackler family has maintained its denial of any misconduct, but because of their association with Purdue Pharma and its involvement in the opioid crisis, their name has been banned from prominent establishments, such as universities and art galleries.
Legal experts stated that the Sacklers have refuted all allegations of misconduct and that their wealth has mostly been hidden in overseas accounts, making it challenging for litigation to access their whole fortune. Although a large portion of the family’s riches is still beyond of reach for many people impacted by the disease, the family has now committed to pay a sizeable amount in an effort to address the problem.
Will the Sackler Family Continue to Defend Themselves Legally?
The Sackler family has stated that they will continue to defend themselves against future lawsuits, notwithstanding the significance of the Purdue Pharma settlement. A section of the family said in an October 2024 filing that they will contest any charges that are let to proceed, claiming that the legal basis for the lawsuits—that Purdue and the Sackler family are causing a “public nuisance”—is unfounded.
As they continue to refute the allegations regarding their involvement in the opioid crisis, the family further argues that the lawsuit’s allegations are unfounded. Even if they continue to contest the accusations in court, the deal is a significant admission of their role in the crisis, notwithstanding their attempts to disassociate themselves from the legal ramifications.
To sum up, this historic Purdue Pharma settlement is an important step in combating the opioid crisis and providing compensation to individuals impacted by the terrible outcomes of the Sackler family’s conduct through Purdue Pharma. However, the epidemic’s long-term effects will be seen for years to come as legal disputes persist.
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