The billionaire owners of Purdue Pharma, the pharmaceutical company blamed for fueling the US opioid crisis through drugs like OxyContin, will be shielded from lawsuits related to the crisis as part of a $6bn settlement. Purdue Pharma filed for bankruptcy in 2019 amid a multitude of legal actions.
In a recent ruling, an appeals court granted full immunity to the Sackler family, owners of Purdue Pharma, from civil suits in exchange for their payment of $6bn towards addressing opioid addiction. A 2021 investigation revealed that the Sackler family, who have held a controlling share of the company since 1952, collectively possesses a net worth of $11bn.
The settlement funds will be allocated over multiple years, primarily going towards local and state governments to support rehabilitation programs and addiction treatments. Approximately $750m of the settlement will be distributed to individual victims and their families who have been impacted by the opioid crisis.
The ruling by a three-judge panel of the US Court of Appeals for the Second Circuit removes a significant obstacle to the payout and paves the way for the final approval of the settlement by a court. While the immunity shields the Sackler family from future civil cases, it does not protect them from potential criminal charges.
As part of the settlement, the Sackler family will relinquish ownership of Purdue Pharma, which will be rebranded as Knoa. The company’s profits will be directed towards a fund for addiction treatment. Additionally, the family has agreed to have their name removed from buildings and scholarships, responding to protests and public pressure.
The settlement marks a crucial step towards providing substantial resources for individuals and communities in need, according to the families of the late Mortimer and Raymond Sackler, Purdue Pharma’s founders. Purdue Pharma expressed its commitment to channeling the funds into victim compensation, opioid crisis mitigation, and overdose rescue medications moving forward.
The US continues to grapple with the devastating impact of the opioid crisis, with over 100,000 overdose deaths in 2021, 75% of which involved opioids, according to the US Centres for Disease Control and Prevention. Purdue Pharma previously faced legal consequences for promoting opioids as non-addictive painkillers and has pleaded guilty to charges related to its marketing practices. The Sackler family, however, has denied any wrongdoing.
