A $7.4 billion settlement involving Purdue Pharma has received unanimous approval from all 50 U.S. states, the District of Columbia, and U.S. territories. The agreement addresses claims tied to the company’s marketing practices of opioid medications, including OxyContin.
The proposed plan was filed in federal bankruptcy court in March, following discussions between Purdue Pharma, state attorneys general, and other stakeholders. If approved, payments are expected to be distributed over the next 15 years.
As part of the agreement, members of the Sackler family, current owners of Purdue Pharma, are set to contribute approximately $6.5 billion. A significant revision from previous proposals allows individuals to pursue civil litigation against the Sacklers if they do not accept the release provisions included in the plan.
Purdue Pharma stated that the unified support from states and territories marks a critical milestone in efforts to direct funds toward opioid crisis abatement, victim compensation, and distribution of treatment and overdose-reversal medications.
The Sackler family has maintained that they committed no wrongdoing. No official response has yet been provided by its members.
Attorneys involved in the nationwide litigation welcomed the resolution, emphasizing the importance of over $7 billion in financial aid for communities affected by the opioid epidemic.
However, the plan has also faced criticism. Ryan Hampton, an addiction recovery advocate and former OxyContin user, pointed out that only around $850 million would be allocated directly to victims. He expressed disappointment over the expected compensation, which he described as inadequate after years of legal proceedings.
The settlement still requires approval from a federal bankruptcy court. Experts suggest that this revised plan is more likely to be accepted by the courts and the U.S. Department of Justice.
If finalized, the settlement will contribute to the more than $50 billion already pledged by companies connected to the manufacture, distribution, and sale of opioid painkillers in the U.S.
