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Purdue Pharma and the Sackler family that controlled it have agreed to pay several US states $7.4 billion to settle claims in the opioid maker’s bankruptcy.
The preliminary agreement with more than a dozen states comes after months of mediation between the family and at Purdue creditors. The drugmaker initially filed for bankruptcy in 2019 in federal court in New York to pursue hundreds of lawsuits over its role in the opioid crisis.
A previous $6 billion deal negotiated between the family and creditors was overturned by the US Supreme Court last summer. The agreement relied on protecting family members from future lawsuits, which the court said was not allowed without family members themselves filing for bankruptcy.
The funds will be used over the next 15 years to pay for opioid addiction treatment and recovery programs, according to a statement from the Texas attorney general’s office.
This is a developing story.
