Purdue Pharma agrees to $7.4 billion in opioid settlement 

The pharmaceutical company has settled its lawsuit over OxyContin.

Purdue Pharma and the Sackler family members who own the company have agreed to pay up to $7.4 billion in a new settlement to lawsuits over the impact of the powerful prescription painkiller OxyContin.

This new settlement replaces a previous deal that was rejected by the U.S. Supreme Court last year.

The big picture: The agreement includes Purdue Pharma paying nearly $900 million, while the Sackler family members will contribute up to $6.5 billion and give up ownership of the company.

  • This settlement is among the largest reached in recent years to hold companies accountable for their role in the deadly opioid epidemic.
  • The settlement will require court approval, and some details are still being negotiated. The U.S. Department of Justice had opposed the previous settlement but is not expected to oppose the new deal.
  • The agreement aims to compensate victims, address the opioid crisis, and provide treatment and overdose rescue medicines to save lives.

Go deeper: Under the new proposal, the Sackler family will relinquish ownership of Purdue Pharma to a new entity with its board appointed by states and others who sued the company.

  • Between $800 million and $850 million will go to victims of the opioid crisis or their survivors, addressing a crucial aspect often missing in previous opioid settlements.
  • If the new agreement is not approved, it could lead to further legal challenges against Sackler family members, as some provisions protect them from civil lawsuits related to OxyContin.
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