The opioid epidemic is so prevalent across the U.S. that both Republicans and Democrats from states with different political leanings put aside their differences and worked together to reach a $7.4 billion settlement with Purdue Pharma, Inc. and members of the Sackler family who control the company. In particular, the settlement was focused on the opioid OxyContin, a powerful, addictive and potentially dangerous prescription drug.
The bipartisan coalition created a deal that was accepted by Purdue and members of the Sackler family over their pivotal role in the opioid crisis.
Attorneys General from the states of California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, and West Virginia worked together to reach the settlement.
Texas Attorney General Ken Paxton announced the gigantic settlement, saying that it took years to negotiate the accepted agreement between the parties.
“For years, I have aggressively worked to hold Purdue Pharma and other corporations accountable for their roles in creating and exacerbating the deadly opioid crisis that harmed so many Americans,” said AG Paxton. “While nothing can restore the damage done, this settlement will provide Texans valuable resources to help prevent more opioid abuse. It was an honor to help lead these negotiations and I will never stop ensuring that justice is secured for those affected.”
Paxton has successfully negotiated numerous resolutions regarding the opioid crisis, resulting in over $3 billion in settlements with companies such as CVS, Walgreens, Walmart, Johnson & Johnson, and others.
The settlement with the Sacklers is over a billion dollars more than the 2024 prior settlement, which the U.S. Supreme Court rejected.
This settlement arrives in the nick of time, only a few days before a court order will block lawsuits against Sackler family members on Friday. However, the Associated Press said a U.S. bankruptcy court judge was requested to pause the block until March 1.
Under the terms of the settlement, both parties will pay different amounts for their part of the deal. The Sackler family will pay up to $6.5 billion, and Purdue will pay $900 million.
The $7.4 billion settlement still needs court approval, but it is expected to be approved. It is one of the largest settlements in U.S. history after numerous lawsuits were filed by local and state governments, Native American tribal governments, and others against Purdue and members of the Sackler family for their roles in fueling the opioid crisis.
States are now planning to use the windfall to assist their residents with opioid assistance, from education to prevention to treatment facilities and more programs. Connecticut Attorney General William Tong said the billionaire defendants were not above the law, and that justice was served with the settlement.
“This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down,” said AG Tong. “Today, we are forcing Purdue Pharma and the Sackler family to pay $7.4 billion for their role in igniting one of the most devastating public health crises in American history. This is $1.4 billion more than the settlement reached in 2022, and $3.1 billion more than the settlement Connecticut rejected in 2021. I have said since day one that this fight has been about justice and accountability for the hundreds of thousands of victims and families wrecked by the opioid epidemic. There will never be enough justice or dollars to restore those families or right this terrible wrong. I will continue to insist that Connecticut’s settlement funds be used to save lives through opioid treatment and prevention, including direct relief to victims and their families.”
As part of the settlement, the Sacklers will no longer control Purdue. The agreement bars them from selling any opioid drugs in the U.S. The coalition of states participating in the settlement selected a board of trustees to plan the future of the company, where Purdue will be under the purview of a monitor and be barred from lobbying or marketing any opioids in the U.S.
