Purdue, Sacklers' $7 billion opioid deal wins backing of 55 states, territories
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Attorneys general from 55 U.S. states and territories signed onto a $7.4 billion settlement with Purdue Pharma and the Sackler family for their role in the country's opioid epidemic, officials said Monday.
Why it matters: The settlement, first announced in January, ends the Sackler family's control of Purdue Pharma and prohibits them from selling opioids in the country going forward, per state officials.
- It ends the states' litigation against the company and the Sackler family, but does not shield the Sackler family from future opioid crisis lawsuits.
State of play: The funds will be distributed over 15 years, with the majority going out to states in the first three years, per the deal. The Sacklers will pay $1.5 billion in their first payment, and Purdue will pay about $900 million.
- Purdue Pharma filed a new bankruptcy plan in March to aid in delivering the settlement.
- Local government sign-on for the settlement is contingent on approval from bankruptcy court, state attorneys general said in news releases.
Flashback: Purdue Pharma filed for bankruptcy in 2019, and in 2021 a court approved a bankruptcy plan that would have protected the Sackler family from future opioid-related lawsuits.
- After a U.S. district court overturned that order, attorneys general negotiated a new $6 billion settlement. That settlement, which still shielded the family from future lawsuits over their involvement in the epidemic, was later overturned by the U.S. Supreme Court.
What they're saying: "While we know that no amount of money can erase the pain for those who lost loved ones to this crisis, this settlement will help prevent future tragedies through education, prevention, and other resources," New Jersey Attorney General Matthew Platkin said in a statement.
