Will Other States Settle with Purdue Pharma? Sackler Family and Purdue Pharma Settle for $7.4 Billion Over Opioid Crisis
The Sackler family and Purdue Pharma have reached a landmark $7.4 billion settlement with a bipartisan group of 15 states, following years of legal battles surrounding their role in the opioid epidemic. The settlement, announced by New York Attorney General Letitia James on Thursday, marks the largest settlement ever involving parties responsible for the opioid crisis in the United States.
Key Terms of the Settlement
The agreement prohibits the Sackler family from selling opioids in the United States and removes their control over Purdue Pharma, the maker of the addictive painkiller OxyContin. This follows a pivotal Supreme Court ruling in June 2024, which invalidated a previous settlement that would have granted the Sacklers immunity from future opioid-related lawsuits. Unlike the prior deal, the current settlement does not include such immunity.
The settlement is structured with the Sackler family contributing the bulk of the $7.4 billion—$6.5 billion over 15 years. Purdue Pharma will add nearly $900 million upfront, pending court approval. The Sacklers' payments will be made in installments, with the first $1.5 billion due immediately, followed by $500 million in one year, another $500 million in two years, and the remaining $400 million after three years.
The allocated funds will be used to support opioid addiction treatment, prevention, and recovery efforts across the country. Over half of the funds will be directed toward addressing the crisis in the initial years of the settlement.
Attorney General Letitia James' Remarks
"This settlement will provide much-needed resources to help communities across New York and the nation heal from the devastation caused by the opioid epidemic," stated James during her announcement. "The Sackler family prioritized profit over the well-being of vulnerable patients and played a pivotal role in instigating and exacerbating the opioid epidemic." She also stressed that the Sacklers would no longer have any involvement with Purdue and would be permanently barred from selling opioids in the U.S.
The settlement also ensures that Purdue Pharma will remain under bankruptcy protection, with a court-appointed monitor overseeing its operations. The company will be prohibited from engaging in any lobbying or marketing activities related to opioids, and a board of trustees will oversee the company’s future direction.
Impact of the Supreme Court Ruling
The Supreme Court's 5-4 ruling in June 2024 was a significant turning point in the case. The justices determined that the Sackler family could not be shielded from civil liability for their role in the opioid crisis. Prior to this decision, an initial bankruptcy settlement with Purdue had been reached, which included over $4.5 billion in contributions from both Purdue and the Sacklers. However, that agreement was struck down by the Court, delaying the distribution of funds that could help the victims of the opioid epidemic.
Further Support for Opioid Recovery Initiatives
Attorney General James also announced that the settlement would provide up to $250 million for opioid treatment and recovery programs in New York. The settlement was negotiated with the attorneys general of California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.
"I will persist in pursuing the companies responsible for the opioid crisis and strive to achieve justice for those who have suffered," James concluded.
This $7.4 billion settlement represents a crucial step in addressing the long-lasting consequences of the opioid epidemic, but it also highlights the ongoing struggles of families affected by addiction. The funds will support vital initiatives aimed at providing treatment, education, and prevention services to those in need.
While the legal battles surrounding Purdue Pharma and the Sackler family are far from over, the new settlement brings hope to many who have been directly impacted by the opioid crisis, offering a significant financial commitment to healing and recovery efforts in affected communities.
Will Other States Settle with Purdue Pharma?
The recent $7.4 billion settlement between Purdue Pharma and a bipartisan group of 15 states, including New York, marks a major milestone in the legal battle over the opioid crisis. However, it raises an important question: Will other states settle with Purdue Pharma?
Given the ongoing legal landscape, the answer seems likely to be yes, with some important nuances to consider. While Purdue Pharma and the Sackler family have agreed to a substantial settlement, many other states and municipalities are still involved in separate lawsuits. These legal challenges are aimed at securing compensation for the opioid epidemic's devastating effects on public health and local communities. The $7.4 billion settlement, which includes contributions from Purdue Pharma and the Sackler family, is just one piece of the broader puzzle in holding those responsible for the crisis accountable.
Why Other States May Settle
Ongoing Legal Pressure -The recent settlement in which Purdue Pharma agreed to pay $7.4 billion is not the only legal action Purdue is facing. More than 2,000 local governments, including counties, cities, and tribal nations, have pursued litigation against Purdue and other pharmaceutical companies involved in the opioid distribution. With a history of settlements between Purdue and various states, other jurisdictions are likely to follow suit, particularly in light of the fact that this agreement has already been negotiated. The settlement sets a precedent that could be difficult for other states to ignore.
Ongoing Opioid Crisis - As of 2024, the opioid crisis remains one of the deadliest public health issues in the United States, with tens of thousands of overdose deaths occurring annually. In light of these staggering numbers, state and local governments are under pressure to secure funding for addiction treatment, recovery services, and prevention efforts. The $7.4 billion settlement represents a substantial financial resource that can help combat the opioid crisis, and other states are likely to see value in securing similar funds for their communities. Additional settlements could help address the long-term effects of addiction, including mental health support and social services.
Political and Legal Motivation - State Attorneys General from both sides of the political aisle have been consistently vocal about holding Purdue and other pharmaceutical companies accountable for their role in the opioid crisis. The bipartisan nature of the recent settlement reflects the widespread political consensus on the issue, with Republican and Democratic states alike agreeing to the terms. Given this broad support, more states will likely be motivated to follow in the footsteps of the 15 states that have already reached an agreement.
The Legal Precedent - The $7.4 billion settlement is significant not just for its size, but because it includes provisions that will directly affect Purdue Pharma’s operations moving forward. Under the settlement, Purdue Pharma will be subject to bankruptcy protection and oversight by a trustee. Purdue is also barred from marketing and lobbying for opioids, and the Sackler family is permanently prohibited from selling opioids in the U.S. These terms create a legal precedent that other states may be eager to replicate in order to ensure similar protections and accountability for Purdue.
Potential Challenges to Further Settlements
While many states may eventually agree to settle, there are several factors that could hinder further settlements with Purdue:
Differences in Terms and Conditions - The terms of the $7.4 billion settlement—particularly the exclusion of immunity clauses for the Sackler family—may not be agreeable to all states. Some states may push for even stricter terms, such as higher compensation or additional legal protections. The negotiation process for these terms could delay future settlements or create conflicts between states with differing priorities.
Ongoing Litigation - Several states and local governments are still pursuing litigation, and some may choose not to settle. In these cases, plaintiffs could either continue to seek a more favourable settlement or push forward with trials that could result in additional legal action. As the courts have demonstrated in past rulings, such as the invalidation of the initial bankruptcy deal by the Supreme Court, there’s always a chance that further judicial rulings could affect the course of settlements.
Scrutiny and Accountability - The controversy surrounding Purdue’s past actions has made settlements with the company a sensitive issue for many states. There is still considerable public interest in ensuring that Purdue and the Sacklers are held fully accountable for their role in the opioid epidemic. Some states may resist settling until they are confident that the terms of the agreement adequately reflect the harm caused by the company and its owners.
Could Further Legal Challenges Emerge?
While some states will likely opt for settlements, others may choose to continue with their lawsuits. In particular, tribal nations, cities, and municipalities that have been deeply affected by the opioid crisis may decide to pursue their own legal action against Purdue. These local governments often have unique legal and political considerations that could lead them to take a different path than the states involved in the current settlement.
Additionally, new legal challenges could arise as the effects of the opioid epidemic continue to evolve. Issues such as the long-term social costs of addiction, the failure of Purdue to fully cooperate with investigations, and the accountability of other opioid manufacturers or distributors may create new opportunities for lawsuits and settlements.
What Will Future Settlements Look Like?
Future settlements are likely to follow the framework established by the $7.4 billion deal, with substantial financial contributions aimed at addressing the opioid crisis. However, additional settlements could result in higher payments, particularly if they are negotiated with different state coalitions or include other major players in the pharmaceutical industry.
Further settlements may also see a more significant role for public health initiatives. Much of the $7.4 billion settlement will be used to fund addiction treatment, recovery programmes, and prevention efforts. These efforts will likely continue to be a primary focus of future settlements, as states and local governments look to mitigate the impact of the opioid epidemic on their communities.
The $7.4 billion settlement between Purdue Pharma and 15 states is a significant achievement in the fight against the opioid epidemic. However, it is unlikely to be the final settlement. The legal battle against Purdue Pharma, the Sackler family, and other pharmaceutical companies responsible for the opioid crisis is far from over.
With numerous other lawsuits still active and more states considering legal action, additional settlements could provide further financial resources for the ongoing recovery efforts. States, cities, and local governments are committed to holding Purdue accountable, and as such, it’s highly likely that future settlements will be reached in the coming years to continue the fight for justice for opioid victims.
