Judge to Approve Opioid Settlement with Purdue Pharma, Sackler Family

A federal bankruptcy court judge has signaled his intention to approve a significant settlement involving Purdue Pharma, the maker of OxyContin. This settlement is set to resolve thousands of lawsuits linked to the opioid crisis, which has resulted in approximately 900,000 deaths in the United States since 1999.

Purdue Pharma Settlement Overview

The agreement, overseen by U.S. Bankruptcy Judge Sean Lane, requires the Sackler family—owners of Purdue Pharma—to contribute as much as $7 billion and relinquish their ownership of the company. This revised settlement comes after a previous agreement was rejected by the U.S. Supreme Court due to concerns over improper protections for the Sackler family against future lawsuits.

Details of the Settlement

• The new arrangement allows entities not participating in the settlement to proceed with legal action against the Sackler family.
• Over 54,000 personal injury victims participated in a voting process; only 218 opposed the plan.
• Approximately $850 million is allocated for individual victims, with specific amounts earmarked for children born with opioid withdrawal symptoms.
• The settlement funds are expected to be disbursed over the next year, while state and local government allocations may take up to 15 years.

Financial Implications

According to projections, individuals who can demonstrate prolonged prescriptions of Purdue’s opioids might receive about $16,000, while those with shorter prescriptions could obtain around $8,000. Legal fees will, however, reduce these amounts substantially.

Impact on the Sackler Family and Purdue Pharma

As part of the agreement, the Sackler family will have no involvement with opioid-selling companies abroad. The name of Purdue Pharma will be changed to Knoa Pharma, reflecting a broader mandate to dedicate profits toward addressing the opioid epidemic.

Future Considerations

Members of the Sackler family are barred from having their names associated with institutions in exchange for charitable contributions. Additionally, many company records, typically protected under lawyer-client privilege, will be disclosed, aiming for greater transparency as the opioid crisis continues to unfold.

Community Reactions

The emotional debate surrounding the settlement has revealed conflicting views. Victims and their advocates express disappointment over the perceived insufficiency of compensation. Some argue that only victims, rather than state entities, should benefit from the settlement proceeds.

Despite concerns, many lawyers involved believe this settlement offers a more viable route compared to protracted litigation against the Sacklers. The funds are primarily designated for use by state and local governments to combat the opioid crisis, indicating a potential for long-term beneficial outcomes.