Topline
The billionaire Sackler family has agreed to shell out as much as $6 billion to settle litigation accusing their company Purdue Pharma—the maker of OxyContin—of contributing to the opioid crisis that has killed nearly half a million Americans, in a deal that would shield them from future civil lawsuits—but not criminal charges.
Key Facts
As part of the settlement, the Sacklers have agreed to make a public apology and give up control of Purdue Pharma—which would become a new entity, with profits going toward mitigating the opioid crisis—and permitting universities, museums and other institutions to take down the Sackler name.
The money would be distributed among states, local governments, Native American tribes and other plaintiffs and go toward addiction treatment programs and the effects of the opioid crisis on communities.
A federal judge in December rejected a previous settlement deal worth about $4.5 billion after it was appealed by eight states and Washington, D.C.
The settlement must be approved by Judge Robert Drain, who has presided over the company’s New York bankruptcy proceedings.
Crucial Quote
“While the families have acted lawfully in all respects, they sincerely regret that OxyContin, a prescription medicine that continues to help people suffering from chronic pain, unexpectedly became part of an opioid crisis that has brought grief and loss to far too many families and communities,” reads a statement from two branches of the Sackler family included in the Thursday filing, according to the New York Times.
Big Number
$10.8 billion. That’s how much the Sackler family is worth, making them the thirtieth-richest family in the U.S., according to a 2020 Forbes estimate.
Key Background
Last week, Johnson & Johnson and the three biggest U.S. drug distributors—Cardinal Health, AmerisourceBergen and McKesson—announced they would pay $26 billion to settle more than 3,000 opioid civil lawsuits. It was the second-largest civil litigation settlement in U.S. history, falling behind only the $206 billion tobacco settlement in 1998. Purdue Pharma has pleaded guilty twice to criminal charges related to the opioid crisis.
Further Reading
Sacklers and Purdue Pharma Reach New Deal With States Over Opioids (New York Times)
Purdue Pharma, US states agree to new opioid settlement (Associated Press)
Federal Court Overturns Purdue Pharma Settlement That Shielded Sacklers From Opioid Suits (Forbes)
Drug Overdose Deaths Surged 29% Last Year Amid Covid Pandemic, CDC Says (Forbes)
Opioid Overdose Deaths Cost U.S. Economy $1 Trillion A Year, Study Finds (Forbes)
