Washington, D.C., is witnessing significant developments in the ongoing fight against the opioid crisis following approval of a $7.4 billion settlement involving Purdue Pharma, the maker of OxyContin. The agreement has gained traction among all 50 states, the District of Columbia, and U.S. territories, aiming to address Purdue’s controversial marketing practices that contributed to widespread addiction and overdose deaths.
The settlement, filed in federal bankruptcy court by Purdue Pharma in March, stems from negotiations involving state attorneys general and other key stakeholders. If finalized, funds from this settlement are expected to be distributed over the next 15 years to initiate recovery efforts in affected communities. New York Attorney General Letitia James emphasized that the agreement holds the Sackler family accountable for their role in the opioid epidemic, which she described as pivotal in the crisis affecting countless individuals nationwide.
Under the terms of the proposed deal, members of the Sackler family, who have long been at the center of criticism surrounding Purdue, are obligated to contribute up to $7 billion. In a notable shift from previous agreements, individuals and entities wishing to pursue civil lawsuits against the Sacklers will not be required to relinquish their rights to do so. Purdue stated that creditors can maintain their legal options if they choose to opt out of certain clauses linked to the Sackler family’s participation in the settlement.
Despite facing considerable backlash, the Sackler family has maintained that they acted lawfully and did not engage in wrongdoing. Efforts to reach the family for additional comments have yielded no response so far. Attorneys representing various plaintiffs have voiced their approval of the settlement. Members of the National Prescription Opiate Litigation Plaintiffs’ Executive Committee noted that after lengthy litigation spanning five years and three years in bankruptcy, the unanimous agreement among all eligible states and territories marks a significant milestone.
They emphasized that this financial influx could bring essential resources to communities grappling with the repercussions of opioid misuse. For this settlement to take effect, it must receive approval from a federal bankruptcy court. Legal experts anticipate a favorable outcome, suggesting that the courts and the U.S. Justice Department are likely to endorse this version of the agreement.
Previous attempts at settlement faced scrutiny from the Justice Department’s bankruptcy oversight agency, culminating in a July 2024 Supreme Court ruling that rejected an earlier deal. If the current settlement is approved, it would supplement more than $50 billion already directed towards addressing the opioid crisis, highlighting the urgent need for accountability and recovery in the wake of a public health emergency that has devastated communities across the nation.