Settlement Reached With Purdue Pharma Over Opioid Crisis

Settlement Reached With Purdue Pharma Over Opioid Crisis

The $7.4 billion settlement struck by New York Attorney General Letitia James with Purdue Pharma and the Sackler family marks a turning point in battling the opioid crisis—but what comes next for those involved?

Quick Takes

  • A $7.4 billion multistate settlement has been reached with the Sackler family and Purdue Pharma.
  • The deal ends the Sacklers’ control of Purdue Pharma.
  • The funds will support opioid addiction treatment and prevention nationwide.
  • This is the largest settlement to date with individuals accountable for the opioid crisis.

Unprecedented Settlement Reached

New York Attorney General Letitia James has negotiated a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. This figure, agreed upon amidst a multistate coalition, aims to address the extensive role Purdue played in the opioid crisis by distributing OxyContin. The deal ends the Sacklers’ control over Purdue and transfers governance to a state-appointed board. Funds aim to facilitate opioid addiction treatment and prevention programs over the next 15 years.

The coalition, including New York, Florida, and Texas, seeks to mitigate the opioid epidemic’s effects. Florida estimates its share of the settlement between $233.37-$325.93 million, enhancing total opioid recoveries beyond $3.4 billion. The settlement provides substantial assets aimed at addressing the pervasive public health crisis.

Legal and Financial Implications

The settlement is a result of bipartisan efforts to hold the Sackler family accountable. Yet, it does not automatically shield them from future legal liabilities, focusing instead on payments in exchange for consensual releases. This agreement ranks as the largest settlement involving individuals held responsible for the opioid crisis, marking a major legal milestone in tackling pharmaceutical accountability.

Funds from this comprehensive settlement will support opioid addiction treatment and related services nationwide. The strategy emphasizes prevention and recovery, laying groundwork for the build-up of local efforts across afflicted communities. New York alone is poised to receive up to $250 million, giving a critical boost to state-level initiatives.

The Path Forward

Beyond individuals responsible, this settlement involves eight heirs tied to Purdue founders and their financial networks. It unlocks over 30 million documents to be made public, documenting the Sacklers’ opioid business practices. This transparency intends to enhance ongoing investigations, ensure accountability, and guide future regulatory frameworks for pharmaceutical ethics.

As part of a broader multistate coalition, various states including Florida have incrementally secured in excess of $3 billion from other companies through diligent litigation.

Sources

  1. Florida Attorney General’s Office Secures $7.4 Billion from Purdue Pharma and the Sackler Family for Fueling the Opioid Crisis
  2. Attor­ney Gen­er­al Ken Pax­ton Secures $7.4 Bil­lion Set­tle­ment With Pur­due Phar­ma and Sack­ler Fam­i­ly for Role in Opi­oid Epidemic
  3. New York Attorney General Reaches $7.4 Billion Settlement With Purdue Pharma