The long-running Purdue Pharma case may finally be over. All attorneys general from U.S. states, territories, districts and possession have signed on to a $7.4 billion settlement with the company and its owners, the Sackler family.
The Sackler family has said it is prepared to proceed with the settlement, which would resolve litigation against Purdue and the Sacklers for their role in the creating and worsening the opioid crisis across the country. Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.
The basis of the settlement was announced in January by New York Attorney General Letitia James and other states, and the support announced today could help Purdue Pharma win court approval for its bankruptcy reorganization.
“One of the very first cases I brought was against the Sackler family, working to hold them accountable and provide critical funds to address our opioid crisis,” said Colorado Attorney General Phil Weiser. “The Sacklers’ conduct was outrageous, illegal, and immoral; this settlement ends their involvement with Purdue Pharma and provides a measure of accountability for their wrongdoing.”
Opioid crisis lasted decades
Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States.
"For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic," James said in a statement today. "While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis."
Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery.
This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis.
Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion, and Purdue will pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.
Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve resolution of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days.