Purdue Pharma Owners Could Pay $7.4B in New Settlement Over OxyContin Suits

New Agreement Reached to Compensate Victims and Abate Opioid Crisis

Members of the family who own Purdue Pharma, the manufacturer of the powerful prescription painkiller OxyContin, have agreed to pay up to $7.4 billion in a new settlement to lawsuits over the toll of the opioid crisis, Connecticut Attorney General William Tong and New York Attorney General Letitia James announced Thursday.

Terms of the Settlement

The deal, agreed to by Purdue Pharma, the Sackler family members who own the company, and lawyers representing state and local governments and thousands of victims of the opioid crisis, represents an increase of more than $1 billion over a previous settlement deal that was rejected last year by the U.S. Supreme Court.

Under the new proposal, members of the Sackler family who own Purdue would contribute up to $7.4 billion over 15 years and give up ownership of Purdue, which would become a new entity with its board appointed by states and others who sued the company. A portion of the money is also to go to victims of the opioid crisis or their survivors.

Court Approval Needed

The deal still needs court approval, and some of the details are yet to be ironed out. However, the new agreement protects family members from lawsuits only from entities that agree to the settlement.

Background on the Opioid Crisis

The opioid crisis has been linked to hundreds of thousands of deaths in the U.S. since the introduction of OxyContin in 1996. The deadliest stretch has been since 2020, when illicit fentanyl has been found as a factor in more than 70,000 deaths annually.

Response from Purdue Pharma

“We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court,” Purdue Pharma said in a statement.

Conclusion

The new settlement could bring to a close a long legal saga over the toll of the opioid crisis. While the deal is still subject to court approval, it marks a significant step towards compensation for victims and abatement of the crisis.

FAQs

* What is the new settlement amount?
+ Up to $7.4 billion over 15 years
* Who is responsible for the settlement?
+ Members of the Sackler family who own Purdue Pharma
* What is the purpose of the settlement?
+ To compensate victims and abate the opioid crisis
* Has the settlement been approved by the court?
+ Not yet, but it still needs to be approved by the court