A significant development has taken place in the ongoing opioid crisis in the United States, as a judge has announced plans to approve a settlement deal between Purdue Pharma, the manufacturer of OxyContin, and members of the Sackler family, who own the company. This deal aims to resolve thousands of lawsuits related to the devastating impact of opioids, which have been linked to over 900,000 deaths in the U.S. since 1999. The settlement is expected to provide financial relief to victims and their families as early as next spring.
The Sackler Family’s Role in the Opioid Crisis
Members of the Sackler family have been widely criticized for their role in the opioid epidemic, with many viewing them as key contributors to the crisis. Although other companies have also been involved in the sale of opioids, the marketing of OxyContin, which was first introduced in 1996, is often cited as a pivotal moment in the crisis. The Sackler family received over $10 billion from Purdue Pharma in the decade leading up to 2018, with approximately half of this amount going towards taxes. As part of the settlement, the family will contribute up to $7 billion and relinquish ownership of the company.
The Sackler family will also be prohibited from engaging in the opioid business in other countries and will not be allowed to have their names associated with charitable donations or institutional naming rights. Many museums and universities have already severed ties with the family due to their connection to the opioid crisis.
Purdue Pharma’s Future
Under the terms of the settlement, Purdue Pharma will undergo a significant transformation. The company will be renamed Knoa Pharma and will operate as an entity dedicated to the public good, with a board of directors appointed by state officials. While the company may still produce OxyContin, its primary focus will be on addressing the nation’s opioid crisis. Purdue Pharma will also be subject to independent monitoring and will be required to make public millions of internal documents, including those that would normally be protected by attorney-client privilege.
The company has also agreed to plead guilty to charges related to its role in the opioid crisis, including paying doctors to promote OxyContin and failing to prevent the diversion of the drug to the black market. This guilty plea was negotiated with the U.S. Department of Justice in 2020.
Support for Victims and Survivors
The settlement includes provisions for individual victims and their survivors, with approximately $850 million allocated for this purpose. This amount includes over $100 million dedicated to the care of children born with withdrawal symptoms due to opioid exposure. While this funding is expected to be distributed next year, government entities will have up to 15 years to receive their allocated funds.
However, some victims have expressed frustration with the settlement, citing the relatively small amount of money they will receive. Those who qualify for compensation by showing they were prescribed OxyContin can expect to receive around $8,000 or $16,000, depending on the duration of their opioid use.
Potential for Future Lawsuits
A previous settlement plan was approved in 2021 but was later overturned by the U.S. Supreme Court, which ruled that the Sackler family would have received improper protections from lawsuits. This time, an appeal is less likely, as no represented parties objected to the plan during the recent hearing. However, some individual victims without legal representation continued to express opposition to the settlement.
The new settlement allows for lawsuits to be filed against Sackler family members by entities that do not opt into the agreement. The city of Baltimore has already indicated its intention to pursue legal action. For more information on this developing story, please visit Here
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