Sackler Family topayUS $7 billion in landmark opioid settlement

USA – Purdue Pharma has submitted a new bankruptcy plan, outlining how funds from its $7.4 billion opioid settlement will be distributed.

The plan details how much the company and its owners, the Sackler family, will contribute, aiming to compensate victims and support efforts to address the opioid crisis.

Under the new agreement, the Sacklers will pay approximately US $6.5 billion over the next 15 years, with US $1.5 billion paid upfront when the plan takes effect.

An additional $500 million may be provided if international pharmaceutical businesses they sell exceed expected values.

Meanwhile, Purdue will raise US $900 million, which will go toward funding the settlement as the company dissolves and transitions into a public benefit company.

The new non-profit organization will develop and distribute opioid addiction treatments and overdose-reversal drugs, with no connection to the Sackler family.

The settlement is structured to ensure compensation for those impacted by the opioid crisis, while also requiring state and local governments to reinvest their shares into tackling opioid addiction.

Individual victims will receive over US $850 million, though some funds will be held in reserve.

This latest bankruptcy filing replaces Purdue’s previous plan, which was rejected by the U.S. Supreme Court in 2023.

The earlier version would have given the Sacklers immunity from future opioid-related lawsuits, but the court blocked this provision.

The Sacklers have not declared bankruptcy and continue to deny wrongdoing, though they have agreed to contribute US $1 billion more than in the previous plan.

The settlement remains conditional on creditor participation—creditors who choose to join will receive payments, while those who opt out retain the right to sue the Sacklers directly.

Purdue Board Chairman Steve Miller called the filing a “major milestone” and reaffirmed the company’s commitment to resolving the crisis.

This plan represents a significant step in resolving the legal battle over OxyContin, Purdue’s prescription painkiller that has been linked to widespread addiction and overdose deaths.

The company launched OxyContin in 1996, promoting it with misleading claims and aggressive marketing.

Purdue and the Sacklers have long been accused of playing a central role in the opioid epidemic, which has claimed over one million lives in the U.S. since 1999.

In 2022 alone, nearly 82,000 people died from opioid overdoses, though 2023 saw a decline due to greater access to the overdose-reversal drug naloxone and settlements with other pharmaceutical companies.

In addition to Purdue, several other companies have reached national opioid settlements, including Teva Pharmaceuticals, Johnson & Johnson, CVS, Walgreens, and Walmart.

These agreements are part of broader efforts to hold pharmaceutical firms accountable and fund solutions to the opioid crisis.