Sackler Family Agrees to $7.4 Billion Settlement Over Opioid Crisis
The Sackler family, owners of OxyContin maker Purdue Pharma, has agreed to pay up to $7.4 billion to settle lawsuits linked to the opioid epidemic—one of the largest settlements of its kind.
Key Terms of the Settlement
- The Sacklers will pay up to $7.4 billion over 15 years.
- Purdue Pharma will no longer be controlled by the Sacklers. Instead, it will become a new entity run by a board appointed by states and others who sued the company.
- The funds will go to victims of the opioid crisis, their families, and state and local governments to help combat opioid addiction.
- The agreement still needs court approval.
Background: Purdue Pharma and the Opioid Crisis
Purdue Pharma filed for bankruptcy in 2019 after facing thousands of lawsuits. The company had aggressively marketed OxyContin, falsely claiming it had a low risk of addiction. Experts argue that the opioid epidemic began after OxyContin hit the market in 1996.
Since then, opioids have contributed to hundreds of thousands of deaths in the U.S. The crisis worsened after 2020, when illicit FYL became the leading cause of overdose deaths, with over 70,000 fatalities annually.
Legal Battles and Public Outrage
- The U.S. Supreme Court previously blocked a $6 billion settlement because it would have shielded Sackler family members from civil lawsuits.
- More than 100 lawsuits against drug companies, distributors, and pharmacies have led to $50 billion in settlements.
- The Sacklers have faced global backlash, with their name removed from museums and universities.
The Sacklers’ Response
While agreeing to the settlement, the Sacklers deny wrongdoing. They maintain that lawsuits blaming them for the crisis lack merit. Some estimates suggest they still control billions in offshore accounts, making it difficult to access their full wealth through legal action.
What’s Next?
If the settlement is approved, Purdue Pharma will be restructured, and funds will be distributed to help address opioid addiction and treatment efforts. However, some Sackler family members plan to continue fighting lawsuits that move forward.
Source: The Guardian