This landmark case involves 55 state attorneys general and aims to provide compensation for victims while funding addiction recovery programs.
In a significant legal development, attorneys general from all 50 states, Washington, DC, and four US territories have reached a staggering $7.4 billion settlement with Purdue Pharma, the manufacturer behind OxyContin—a medication linked to the widespread opioid addiction crisis in the United States.
The announcement was made on Monday by New Jersey Attorney General Matthew Platkin, who spearheaded the coalition.
“While we recognize that financial compensation cannot mend the heartache felt by families who have lost loved ones to this epidemic, this settlement represents a proactive step towards preventing future losses through education, prevention, and comprehensive resources,” Platkin stated in a press release.
He emphasized that the Sackler family, owners of Purdue Pharma, prioritizing profits over lives, will no longer be permitted to sell these substances in the United States as part of the agreement.
This settlement is designed to resolve a multitude of lawsuits aimed at Purdue, with the attorneys general expecting a significant portion of the funds to be allocated within the first three years.
Payouts will commence once Purdue secures enough creditor approval for its Chapter 11 bankruptcy plan, benefiting individuals, state and local governments, and Native American tribes, while the Sackler family relinquishes control of the company.
It’s worth noting that Oklahoma is excluded from this deal, having reached a separate $270 million settlement with Purdue Pharma and the Sacklers back in 2019 over opioid-related claims.
Platkin confirmed that the Sackler family is on board with the settlement plan.
This resolution is poised to fund addiction treatment and recovery initiatives over the next 15 years, according to Platkin’s office.
The attorney general highlighted that this is the largest settlement to date involving individuals accountable for the opioid crisis.
Purdue Pharma has faced intense scrutiny for years, accused of exacerbating the opioid epidemic through aggressive marketing strategies and misleading claims about the drug’s addictive nature.
A spokesperson for Purdue referred to the agreement as a “milestone,” emphasizing that the unanimous support from states and territories is pivotal for establishing a reorganization plan aimed at providing critical resources to combat the opioid crisis and deliver essential treatment to those affected.
In June 2022, the US Supreme Court rejected a prior settlement that would have granted the Sacklers broad immunity from civil lawsuits related to opioids, which would have required them to pay approximately $6 billion.
The US Centers for Disease Control and Prevention reports that over 850,000 individuals have succumbed to opioid-related overdoses since 1999, although there has been a recent decline in such fatalities.