Sackler Family to Pay $7 Billion Over 15 Years in Opioid Settlement

All 50 U.S. states have agreed to a settlement plan proposed by Purdue Pharma, the manufacturer of OxyContin, to resolve thousands of lawsuits related to the opioid epidemic. The plan involves the Sackler family, who own Purdue Pharma, paying up to $7 billion over 15 years to settle these lawsuits. This agreement is a significant development in addressing the widespread impact of the opioid crisis, which has affected communities nationwide.

The settlement plan, approved by all states, includes provisions for the Sackler family to contribute up to $7 billion. This amount is intended to cover the costs associated with the opioid epidemic, including medical treatment, rehabilitation services, and other forms of support for those affected. The settlement also aims to provide financial relief to local governments and communities that have been particularly hard hit by the opioid crisis.

A judge is now being asked to approve the settlement, which would clear the way for local governments and other entities to receive their share of the funds. This approval process is crucial as it will determine the final implementation of the settlement and the distribution of the funds. The judge's decision will be based on the terms of the agreement and the potential benefits it offers to the affected parties.

Under the reworked plan, groups that do not opt into the settlement would still have the right to sue members of the Sackler family. The Sackler family members would give up ownership of Purdue Pharma, resign from the company’s board, and stop receiving distributions from its funds. The remaining entity would get a new name, and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation’s addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims.

The payouts would not begin until after a hearing scheduled for Nov. 10, during which the judge is to be asked to approve the entire plan if enough of the affected parties agree. The request comes about a year after the U.S. Supreme Court rejected a previous version of Purdue’s proposed settlement. The court found it was improper that the earlier iteration would have protected members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection.

The settlement plan has been met with mixed reactions from various stakeholders. While some view it as a necessary step towards addressing the opioid crisis, others argue that it does not go far enough in holding the Sackler family accountable for their role in the epidemic. Despite these differing opinions, the agreement represents a significant milestone in the ongoing efforts to combat the opioid crisis and provide support to those affected by it.

The settlement plan also includes provisions for the dissolution of Purdue Pharma and the establishment of a new entity that will focus on developing treatments for opioid addiction and other related issues. This new entity will be overseen by a trustee appointed by the court, ensuring that the funds are used appropriately and that the company's operations are conducted in a transparent and accountable manner.

In addition to the financial contributions, the settlement plan also includes provisions for the Sackler family to relinquish control of Purdue Pharma and to cooperate with ongoing investigations into the company's role in the opioid epidemic. This cooperation is seen as a crucial step towards ensuring that the Sackler family is held accountable for their actions and that the company's operations are conducted in a responsible and ethical manner.

The settlement plan has been praised by some as a significant step towards addressing the opioid crisis, while others have expressed concerns about the adequacy of the financial contributions and the lack of criminal charges against the Sackler family. Despite these differing opinions, the agreement represents a significant milestone in the ongoing efforts to combat the opioid crisis and provide support to those affected by it. The judge's decision on the settlement will be closely watched as it will determine the final implementation of the agreement and the distribution of the funds.