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Purdue Pharma, Sacklers to pay $6 billion to settle opioid lawsuit

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Social Links for Ariel Zilber
Published March 3, 2022, 12:33 p.m. ET

Purdue Pharma and its owners, the billionaire Sackler family, will pay $6 billion to several states to settle a lawsuit brought about by the devastating opioid crisis, according to court papers.

A New York State judge must now sign off on the deal between the maker of OxyContin and the states.

According to the terms of the deal, the Sacklers, whose cumulative net worth is estimated to be $13 billion, will pay at least $5.5 billion in cash, which will be used to fund treatment centers helping those addicted to opioids.

The Sackler family, who did not admit wrongdoing, said in a statement that they “sincerely regret” that OxyContin “unexpectedly became part of an opioid crisis.”

The lawsuit also grants the family protection from civil liability for all future civil claims, though they are not protected from potential legal exposure.

Purdue Pharma has been accused of pushing massive amounts of its OxyContin pain drug on patients, while underplaying its potential for addiction and abuse, which it has denied. It filed for bankruptcy in 2019, facing a slew of legal claims over the drug.

As part of the agreement, Pudue Pharma and the Sacklers will be protected from any future civil lawsuits.
As part of the agreement, Pudue Pharma and the Sacklers will be protected from any future civil lawsuits. Drew Angerer

“While the families have acted lawfully in all respects, they sincerely regret that OxyContin, a prescription medicine that continues to help people suffering from chronic pain, unexpectedly became part of an opioid crisis that has brought grief and loss to far too many families and communities,” the family statement read.

Purdue Pharma has already pleaded guilty to criminal charges of misleading marketing and minimizing OxyContin’s risk of addiction.

Last summer, Dr. Richard Sackler, a former president and co-chairman of Purdue Pharma, testified in court that neither he, the family, or the company bore any responsibility for the opioid epidemic that has killed half a million Americans in the last 20 years.

Some half a million Americans have died in the last two decades due to the opioid crisis.
Some half a million Americans have died in the last two decades due to the opioid crisis. Pacific Press

U.S. Bankruptcy Judge Robert Drain in September approved a reorganization plan, including a settlement of the lawsuits against the company in which the Sacklers would pay $4.5 billion and be released from future liability.

In December, a federal judge threw out the settlement. US District Judge Colleen McMahon in Manhattan said in a written ruling that the bankruptcy court did not have the legal authority to release the family from liability.

Eight states and the District of Columbia opposed the settlement. Under Thursday’s settlement, $276 million of the increased Sackler contribution will be dedicated to those states and the District of Columbia.

As part of the new settlement, the states agreed to stop fighting Purdue’s effort to protect the Sacklers from future opioid lawsuits.

There is currently a legal shield in place that prevents the Sacklers from being the target of current and future suits. A bankruptcy judge extended that shield on Wednesday until March 23, and Purdue is seeking to make that protection permanent.

Purdue now has agreements in place with all 50 U.S. states and the District of Columbia, but those agreements must be approved by the bankruptcy court.

The states that previously opposed the restructuring were California, Purdue’s home state of Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington.