Purdue Pharma and Sackler Family to Pay $7.4 Billion in Opioid Crisis Settlement, NY AG Announces James By Investing.com
Investing.com — New York State Attorney Letitia James today announced a $7.4 billion settlement with Purdue Pharma Inc. and the Sackler family, marking the nation’s largest settlement to date with individuals responsible for contributing to the opioid crisis. This settlement comes after the United States Supreme Court overturned a previous multi-state settlement with the Sacklers and Purdue in June 2024.
The Sackler family and their company Purdue Pharma are being held accountable for their significant role in creating and fueling the opioid crisis. Purdue, under the leadership of the Sacklers, participated in the invention, manufacture and aggressive marketing of opioid products for decades, leading to widespread addiction and overdose deaths across the country.
The Sackler family will pay up to $6.5 billion over the next 15 years, and Purdue Pharma will pay nearly $900 million after court approval. The funds will be used to support opioid addiction treatment, prevention and recovery programs across the country. A significant portion of the settlement funds will be distributed within the first three years, with $1.5 billion paid in the first payment, followed by $500 million after one year, an additional $500 million after two years and $400 million after three years.
New York will receive up to $250 million from the settlement to support opioid reduction programs statewide. With this settlement, Attorney General James secured more than $3 billion for New York State from opiate manufacturers and distributors for their role in the opiate epidemic.
The settlement also marks the end of the Sacklers’ control of Purdue and prohibits them from selling opioids in the United States. A trustee board, elected by participating states in consultation with other creditors, will determine the future of Purdue Pharma. The company will continue to be monitored by the monitor and will be prevented from lobbying or marketing opioids under the terms of the settlement.
The settlement basically includes the eight heirs of Purdue’s founder Raymond (NSE:) and Mortimer Sackler who served on the Purdue board: Richard, Kathe, Mortimer Jr., Ilene, David and Theresa Sackler; and the estate of Jonathan and Beverly Sackler. Their affiliated trusts, advisers and most of their children and heirs are also included.
The settlement was secured by the attorneys general of several states including California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia, in addition to New York.
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