New $5.5 Billion Deal Reached in Purdue Pharma Bankruptcy Settlement

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Members of the Sackler family that ran the now-bankrupt Purdue Pharma, maker of Oxycontin, will increase their contributions to opioid abatement programs by an additional $1.2 billion to $5.5 billion. 

Previously, the Sacklers were to pay $4.32 billion but nine states opposed the plan. Under terms of the new plan, announced March 3, according to Law360, the Sacklers could end up paying in excess of $6 billion. The final amount the family will pay depends on profits realized by their associated companies and entities. 

One billion of the settlement will be paid out over a period of 18 years and will create an opioid abate fund. The plan also allows institutions to remove the Sackler name from buildings as long as no disparaging statements addressed to the disgraced philanthropic family accompany the removal. 

The Sacklers have denied that they played a role in the opioid addiction epidemic, which has killed over half a million Americans over the last two decades. As part of the settlement, the family must make a public statement expressing regret for the epidemic. 

Terms of the settlement were reached under the auspices of a mediator. Purdue Pharma execs said they were pleased with the settlement and hope it is a harbinger of a close to all the opioid cases against it. 

Per Law360, Purdue released a statement, which read, “”We’re pleased with the settlement achieved in mediation, under which all of the additional settlement funds will be used for opioid abatement programs, overdose rescue medicines, and victims.

“With this mediation result, we continue on track to proceed through the appeals process on an expedited schedule, and we hope to swiftly deliver these resources.”

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