Judge Approves Purdue Pharma, Sackler Family Opioid Settlement: NPR
A federal bankruptcy court has taken significant steps toward resolving the complex issue surrounding Purdue Pharma and the opioid crisis. On December 4, 2023, U.S. Bankruptcy Judge Sean Lane indicated he would approve a settlement plan to resolve thousands of lawsuits filed against the company, which is renowned for producing OxyContin.
Purdue Pharma Settlement Overview
The approved settlement will require the Sackler family, who own Purdue Pharma, to contribute up to $7 billion over a 15-year period. This new agreement seeks to replace a previously rejected settlement, which the U.S. Supreme Court deemed inappropriate as it shielded Sackler family members from future legal actions.
Implications for Victims and Lawsuits
This settlement marks a pivotal moment in a lengthy legal battle related to the opioid epidemic, which has claimed approximately 900,000 lives in the U.S. since 1999. The judge is scheduled to clarify his decision during a hearing next week.
Attorneys from various stakeholders, including representatives from Purdue, state governments, and victims’ advocacy groups, nearly unanimously supported the approval of the bankruptcy plan. Purdue’s attorney, Marshall Huebner, expressed the limitations of compensation but emphasized that this plan would benefit the affected individuals the most promptly.
Settlement Vote and Stakeholder Reactions
- In a recent vote, out of more than 54,000 personal injury victims, only 218 opposed the settlement plan.
- Opposition from individuals has been relatively muted, with many advocates pushing for the resolution.
However, some critics argue that only victims should receive financial compensation. There were fewer protests outside the courthouse compared to previous hearings, reflecting a noticeable shift in public sentiment.
Financial Allocations and Future Directions
The proposed settlement will allocate approximately $850 million to individuals harmed by Purdue’s opioids. This includes over $100 million specifically set aside for children experiencing opioid withdrawal.
| Claimant Types | Expected Compensation |
|---|---|
| Claimants with six months of prescriptions | Approximately $16,000 |
| Claimants with shorter prescriptions | About $8,000 |
Ongoing Legal and Operational Changes
The revised settlement will lead to substantial changes for Purdue Pharma. The company will operate under a new name, Knoa Pharma, and will appoint new overseers dedicated to allocating future profits toward combating the opioid crisis. The Sacklers will also forfeit ownership of Purdue and cannot engage in opioid-related business globally.
This settlement is one of the largest opioid-related agreements to date, coming in a series of settlements that have collectively amassed around $50 billion. Although this total is large, there remains a lack of accountability regarding how funds are utilized to address the epidemic effectively.
As communities continue to grapple with the aftermath of the opioid crisis, this settlement represents a critical step towards accountability and restitution for the many lives affected.
