The $7 billion Sackler & Purdue Pharma lawsuit exposed–Everything you need to know.
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In the shadow of a national tragedy, a landmark legal battle has reached a pivotal moment. The Sackler family, once connected with philanthropy, now bears the weight of their association with one of America's most devastating public health crises—the opioid epidemic.
Purdue Pharma, the company behind the infamous painkiller OxyContin, and its owners, the Sacklers, have agreed to a colossal $7 billion settlement, as announced by New York Attorney General Letitia James. What do you need to know? –
Since 1999, over 760,000 Americans have lost their lives to drug overdoses, with a significant majority involving opioids.
In 2020 alone, nearly 75% of drug overdose deaths were opioid-related. These aren't just statistics; they represent parents, children, friends, and neighbors whose lives were cut short by addiction and overdose.
Under the terms of the settlement, the Sackler family will contribute up to $6.5 billion over 15 years, while Purdue Pharma is set to pay nearly $900 million upon court approval.
The settlement's impact is far-reaching, affecting the eight heirs of Purdue founders Raymond and Mortimer Sackler who served on the company's board. The agreement also stipulates that the Sackler family must relinquish ownership of Purdue Pharma.
The settlement is designed to provide immediate and sustained support to communities grappling with opioid addiction. The Office of the Attorney General reached a $7.4 billion settlement with the Sackler family and their company, Purdue Pharma.
The first payment is expected to be $1.5 billion, followed by additional payments over the next three years, totaling $2.4 billion.
New York is poised to receive up to $250 million, but the benefits will extend to numerous other states, including California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.
Purdue was discovered to have “aggressively” advertised opioid products for decades, with Attorney General James saying that it is “fueling waves of addiction and overdose deaths across the country.”
The journey to this settlement has been long and fraught with legal battles. Attorney General James initially filed a lawsuit against Purdue and the Sacklers in 2019.
An original settlement was approved in 2021 for more than $5.5 billion, but it was invalidated by the United States Supreme Court in June 2024. This prompted New York and other states to secure a new agreement.
This settlement follows similar ones reached with major pharmacies like CVS, Walgreens, and Walmart, which were accused of inadequately regulating opioid prescriptions.
If you or someone you know has been affected by the opioid crisis and believe you qualify for restitution, you'll need to follow the claims process administered through a court-approved fund. Details on how individuals can claim restitution are still forthcoming.
Attorney General James has been vocal about the significance of this settlement, emphasizing, “Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis. The Sackler family relentlessly pursued profit at the expense of vulnerable patients and played a critical role in starting and fueling the opioid epidemic. While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal.”
Purdue Pharma expressed satisfaction with the agreement, saying, “We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives.”
Finance experts like Kevin Thompson and Alex Beene have underscored the historic nature of the settlement and its potential to serve as a turning point in the fight against the opioid crisis.
The new settlement, still pending court approval, is monumental not just for the financial compensation it provides but also for the legal precedent it sets.
Source: NBC News / Youtube.
The Supreme Court's decision against allowing the Sackler family to shield themselves from the settlement through bankruptcy protection laws reaffirms the principle of accountability.
This could reshape how corporations and executives are held responsible for public health crises in the future.
"This sets a critical precedent—bankruptcy protections, traditionally used to safeguard businesses, have often been leveraged by wealthy and powerful individuals to avoid liability," Thompson said. "This decision reaffirms accountability and could reshape how corporations and executives are held responsible for public health crises in the future."
What are your thoughts on the misuse of opioid medications? What are your hopes for how the settlement funds will be used? Do you have questions about the claims process or other aspects of the settlement? Comment your thoughts and concerns down below!
Purdue Pharma, the company behind the infamous painkiller OxyContin, and its owners, the Sacklers, have agreed to a colossal $7 billion settlement, as announced by New York Attorney General Letitia James. What do you need to know? –
Since 1999, over 760,000 Americans have lost their lives to drug overdoses, with a significant majority involving opioids.
In 2020 alone, nearly 75% of drug overdose deaths were opioid-related. These aren't just statistics; they represent parents, children, friends, and neighbors whose lives were cut short by addiction and overdose.
Under the terms of the settlement, the Sackler family will contribute up to $6.5 billion over 15 years, while Purdue Pharma is set to pay nearly $900 million upon court approval.
The settlement's impact is far-reaching, affecting the eight heirs of Purdue founders Raymond and Mortimer Sackler who served on the company's board. The agreement also stipulates that the Sackler family must relinquish ownership of Purdue Pharma.
A $7 billion settlement has been reached with Purdue Pharma and the Sackler family for their role in the opioid crisis. Image source: jessica45 / Pixabay.
The settlement is designed to provide immediate and sustained support to communities grappling with opioid addiction. The Office of the Attorney General reached a $7.4 billion settlement with the Sackler family and their company, Purdue Pharma.
The first payment is expected to be $1.5 billion, followed by additional payments over the next three years, totaling $2.4 billion.
New York is poised to receive up to $250 million, but the benefits will extend to numerous other states, including California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.
Purdue was discovered to have “aggressively” advertised opioid products for decades, with Attorney General James saying that it is “fueling waves of addiction and overdose deaths across the country.”
The journey to this settlement has been long and fraught with legal battles. Attorney General James initially filed a lawsuit against Purdue and the Sacklers in 2019.
An original settlement was approved in 2021 for more than $5.5 billion, but it was invalidated by the United States Supreme Court in June 2024. This prompted New York and other states to secure a new agreement.
This settlement follows similar ones reached with major pharmacies like CVS, Walgreens, and Walmart, which were accused of inadequately regulating opioid prescriptions.
If you or someone you know has been affected by the opioid crisis and believe you qualify for restitution, you'll need to follow the claims process administered through a court-approved fund. Details on how individuals can claim restitution are still forthcoming.
Attorney General James has been vocal about the significance of this settlement, emphasizing, “Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis. The Sackler family relentlessly pursued profit at the expense of vulnerable patients and played a critical role in starting and fueling the opioid epidemic. While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal.”
Purdue Pharma expressed satisfaction with the agreement, saying, “We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives.”
Finance experts like Kevin Thompson and Alex Beene have underscored the historic nature of the settlement and its potential to serve as a turning point in the fight against the opioid crisis.
The new settlement, still pending court approval, is monumental not just for the financial compensation it provides but also for the legal precedent it sets.
Source: NBC News / Youtube.
The Supreme Court's decision against allowing the Sackler family to shield themselves from the settlement through bankruptcy protection laws reaffirms the principle of accountability.
This could reshape how corporations and executives are held responsible for public health crises in the future.
"This sets a critical precedent—bankruptcy protections, traditionally used to safeguard businesses, have often been leveraged by wealthy and powerful individuals to avoid liability," Thompson said. "This decision reaffirms accountability and could reshape how corporations and executives are held responsible for public health crises in the future."
What are your thoughts on the misuse of opioid medications? What are your hopes for how the settlement funds will be used? Do you have questions about the claims process or other aspects of the settlement? Comment your thoughts and concerns down below!
