NEW YORK, Jan 23 (Reuters) - Purdue Pharma and the Sackler family have reached a new $7.4 billion settlement to address numerous lawsuits alleging that OxyContin, the pain medication, contributed to a widespread opioid addiction crisis in the U.S., as confirmed by several state attorneys general on Thursday.
This settlement, announced almost seven months after the U.S. Supreme Court rejected the company's previous attempt, involves the Sacklers paying $6.5 billion and Purdue Pharma contributing $900 million. Unlike the previous failed proposal, this agreement does not grant the Sacklers immunity from all opioid-related lawsuits and allows for continued legal actions by states, local governments, and individual victims.
Fifteen states, including New York, California, and Texas, negotiated the deal, which still requires approval from a U.S. bankruptcy judge. Connecticut Attorney General William Tong emphasized that the settlement aims to offer closure to those impacted by the opioid crisis, stating, "There is not enough money in the world to make it right."
Overall, the settlement aims to address the devastating drug addiction crisis that has resulted in over 700,000 opioid-related deaths in the U.S. over the past two decades. Purdue Pharma expressed satisfaction with the new agreement and its potential to compensate victims, alleviate the crisis, and provide critical treatment and overdose rescue medications.
This settlement adds to the roughly $50 billion that multiple pharmaceutical companies and related entities have agreed to pay to settle lawsuits and investigations accusing them of contributing to the deadly opioid epidemic in the U.S.
Purdue Pharma, facing bankruptcy since 2019 due to extensive litigation over their alleged role in fueling the epidemic through deceptive marketing, has already pleaded guilty to misbranding and fraud charges related to OxyContin. The Sackler family, while denying wrongdoing, has expressed regret for the role of OxyContin in the opioid crisis.