All 50 states, plus the District of Columbia and four U.S. territories, have reached a historic $7.4 billion settlement with Purdue Pharma, the maker of OxyContin, the drug widely seen as a key driver of the opioid epidemic. The deal follows the Supreme Court’s rejection of a prior settlement last summer. If approved by courts and the Department of Justice, it would end the Sackler family’s ownership of Purdue and begin payouts to families and communities devastated by the crisis. Last year, more than 50,000 Americans died from overdose involving opioids.
The Sacklers would initially pay about $1.4 billion to $1.5 billion, with the company also contributing funds. The settlement would be paid out over the next 15 years, with a significant initial payout followed by continued disbursements. Most of the $7.4 billion would go to addiction treatment and health care programs around the country. According to NPR’s national addiction correspondent Brian Mann, the money could start moving as soon as next year, noting that after years of legal wrangling, “that’s pretty fast.”
Key differences from rejected settlement
The deal that was struck down by the U.S. Supreme Court last summer contained a provision that forced everyone to give up lawsuits directed at members of the Sackler family. The Supreme Court said bankruptcy courts did not have the authority to compel this. In the new settlement, only people who drop their lawsuits can participate and benefit financially, while those who want to maintain lawsuits can continue them in court. However, the states and U.S. territories—the big players in the litigation—have signed on to the deal.
Compensation to victims
Approximately $850 million of the $7.4 billion settlement will go directly to people who were devastated by OxyContin, including those who lost family members to fatal overdoses or lost years of their own lives to addiction. Divided across all individuals who say they were addicted or lost loved ones, some people will walk away with hundreds of dollars or a few thousand dollars, leading some advocates and victims to express anger about the level of individual payout.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.pbs.org/newshour/show/u-s-states-agree-to-multi-billion-dollar-settlement-with-purdue-pharma-over-opioid-crisis