All 50 states, Washington D.C., and four territories have agreed to sign a $7.4 billion settlement with Purdue Pharma and the members of the Sackler family who own the company.
The settlement aims to resolve thousands of lawsuits related to the opioid crisis, with the family members acknowledging their role in contributing to the epidemic through the widespread production and aggressive marketing of opioids for decades.
The big picture: This agreement is contingent on bankruptcy court proceedings and the involvement of local governments across the country.
- The settlement was initially announced in January, but a prior deal was invalidated by the Supreme Court due to a provision that granted immunity to some Sackler family members from civil lawsuits in exchange for a $6 billion payment.
- If approved, this settlement will be the largest to date by individuals held responsible for contributing to the deadly opioid epidemic. Numerous local, state, Native American tribal governments, and other parties have filed thousands of lawsuits seeking accountability from manufacturers, distributors, and pharmacies.
Driving the news: The deal was negotiated by a bipartisan team comprising attorneys general from several states, including Connecticut, California, Texas, Colorado, Delaware, New York, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, and West Virginia.
What we’re watching: This settlement will deliver funds to participating states, local governments, affected individuals, and other parties who have sued the Sacklers or Purdue. If finalized, most of the settlement funds will be distributed within the first three years.
- The Sacklers would be required to pay $15 billion, with Purdue making an initial payment of around $900 million, followed by subsequent payments totaling $1.4 billion over the next three years.
What they’re saying: “The opioid epidemic has ravaged communities in California and across the country. The companies and individuals who fueled this crisis must be held accountable. With today’s announcement, the California Department of Justice is continuing to deliver results for our communities,” said California Attorney General Bonta.
- “By holding Purdue Pharma and the Sackler family accountable for their role in fueling the opioid epidemic, we’re bringing much-needed funds for addiction treatment, prevention, and recovery to those impacted by this crisis,” Bonta continued. “The California Department of Justice will continue to fight for the health and wellbeing of all Californians.”
