Judge to Sentence Purdue Pharma, Clearing Path for $7 Billion Opioid Settlement
A federal judge is expected to sentence OxyContin maker Purdue Pharma to forfeit $225 million, finalizing a settlement requiring Sackler family members to pay up to $7 billion.
A federal judge is expected to sentence OxyContin maker Purdue Pharma on Tuesday to forfeit $225 million to the Justice Department, clearing the way for the company to finalize a settlement of thousands of lawsuits over its role in the opioid crisis.
The penalty stems from a 2020 agreement to resolve federal civil and criminal probes. Purdue pleaded guilty to three federal criminal charges in November 2020, admitting it failed to maintain an effective program to prevent its prescription painkillers from being diverted to the black market and that it paid doctors to prescribe the drugs through speaker programs.
The broader settlement requires members of the Sackler family, who own the company, to contribute up to $7 billion over 15 years. Most of the money will go to state, local and Native American tribal governments to combat the opioid crisis, with some funds allocated to individual victims and survivors. The settlement is among the largest in a series of agreements by pharmaceutical companies worth more than $50 billion collectively.
Under the agreement, Purdue will cease to exist and be replaced by Knoa Pharma, a new company that will operate for public benefit with a board appointed by the states. Members of the Sackler family will be shielded from future opioid-related lawsuits from those who accept the settlement payments. The family received $10.7 billion in payments from Purdue between 2008 and 2018 but has not been paid by the company since 2018.
More than 54,000 people with personal injury claims against Purdue voted to accept the settlement, while 218 voted against it. Some victims and family members continue to oppose the agreement, arguing it falls short of justice for a crisis linked to 900,000 deaths in the United States since 1999. Critics are pushing for criminal charges against individuals, including Sackler family members, none of whom were charged in the case.
The settlement was approved by a judge last year after years of legal proceedings and could take effect May 1. By the end of last year, Purdue had paid more than $1 billion to law firms and other professionals working on the case, reflecting the complexity of what is considered one of the most complicated corporate reorganizations ever undertaken.