Purdue Pharma has received backing from the attorneys general of 55 states and territories for a $7.4 billion settlement aimed at resolving numerous opioid lawsuits against the company and the Sackler family, its owners. This support is crucial for Purdue as it seeks court approval for its bankruptcy reorganization plan.
The settlement framework was initially announced in January by New York Attorney General Letitia James and other states. The recent endorsement from the attorneys general could pave the way for Purdue to finalize its Chapter 11 plan. The $7.4 billion is intended to address claims that the company’s painkiller, OxyContin, contributed to the widespread opioid addiction crisis across the country.
Of the total amount, approximately $6.5 billion is expected to come from the Sacklers, while Purdue Pharma will contribute about $900 million. Once Purdue secures enough support from its creditors, payouts will start. The funds will be distributed to individuals, state and local governments, and Native American tribes, with the Sacklers relinquishing their control over the company.
Attorney General James highlighted the Sacklers’ role in the opioid epidemic, stating that their focus on profit over public health has caused significant harm. She emphasized that while no financial settlement can undo the damage, this money will help save lives and support communities in combating the opioid crisis.
It is important to note that this agreement does not include Oklahoma, which had previously reached a separate $270 million settlement with Purdue and the Sacklers in 2019.
In June, the U.S. Supreme Court rejected an earlier settlement that would have granted the Sacklers broad immunity from civil lawsuits related to opioids. Under that proposal, they would have paid around $6 billion.
According to the Centers for Disease Control and Prevention, more than 850,000 people have died from opioid-related overdoses since 1999, although there has been a recent decline in such deaths.