Purdue Pharma, along with the Sackler family who controlled it, has agreed to a landmark settlement, paying up to $7.4 billion to resolve lawsuits related to the highly addictive opioid, OxyContin. This deal marks a significant increase of over $1 billion from the previous settlement rejected by the U.S. Supreme Court in 2024, signalling a potential resolution in the ongoing opioid litigation.
The agreement stipulates that the Sackler family will give $6.5 billion, whereas Purdue Pharma will compensate by paying $900 million. Money will primarily be used in opioid addiction treatments and prevention activities and for other victims of the opioid epidemic allover America. The decision has received mixed reactions as some victims are pleased while others say no amount of money can equate to the total damage the opioid crisis has caused.
For years, OxyContin has been accused of fuelling the deadly opioid crisis, often serving as a gateway to harder drugs like heroin. Purdue's aggressive marketing of the painkiller as a safe solution for chronic pain has been heavily criticised, especially as it became clear that the drug was both highly addictive and widely abused. Since OxyContin's release in 1996, opioid overdose deaths have surged, with tens of thousands of fatalities reported each year. [1]
The settlement agreement still awaits court approval, while some details are still being finalized. Another notable aspect of this development is the significant public backlash against the Sackler family for their role in the opioid crisis, though they are also expected to face some legal constraints. Interestingly, a previous settlement deal aimed to grant the Sacklers immunity from further lawsuits in exchange for a $6 billion payment, but it was rejected due to public outcry. This new proposition is gaining much support, as the funds will be allocated toward long-term addiction treatment efforts and the distribution of overdose-reversing medications. [2]
Much of the settlement will be used to finance programs designed to combat the opioid crisis and to provide much-needed healthcare for those affected by addiction. Connecticut Attorney General William Tong said the significance of the settlement is not only in the dollars but in its ability to close the chapter on victims and continue to aid recovery efforts. [2]
The Sacklers had long been aware of the legal risks associated with OxyContin. By the time the company went bankrupt, they had withdrawn approximately $11 billion from Purdue over the previous decade. Many of these funds were allegedly kept abroad, making recovery difficult. Purdue's statement on the settlement emphasized its commitment to helping affected communities, noting that the funds would play a crucial role in providing essential resources for those impacted by addiction. [3]
Kara Trainor, a woman who has been in recovery for 17 years after becoming addicted to OxyContin following a back injury, spoke to the Associated Press about the settlement.
Everything in my life is shaped by a company that put profits over human lives.Kara Trainor, Recovered OxyContin Addict
This is one of the largest settlements related to the opioid crisis, which has devastated communities nationwide, particularly in rural areas. Several states, local governments, and Native American tribes have filed lawsuits against pharmaceutical companies like Purdue, holding them accountable for their role in the epidemic and seeking justice and reparations for the harm caused by OxyContin.
While the settlement represents a significant milestone in the fight against the opioid crisis, many victims and advocates continue to demand greater accountability and long-term solutions to this public health emergency. Beyond financial compensation, there is a growing call for comprehensive systemic reforms to prevent future opioid addiction and ensure pharmaceutical companies are held responsible for their actions. [3]
References :
McArthur, Tom. "Purdue and Sackler Family Agree $7.4bn Opioid Settlement." BBC News, January 24, 2025. https://www.bbc.com/news/articles/ceq97nvjv0wo.
Reuters. "Purdue Pharma, Sacklers Reach $7.4 Billion National Opioid Settlement." Reuters, January 23, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/purdue-pharma-sacklers-reach-74-bln-national-opioid-settlement-2025-01-23/.
Associated Press. "Purdue Pharma and Owners to Pay $7.4 Billion in Settlement of Lawsuits over the Toll of OxyContin." AP News, January 23, 2025. https://apnews.com/article/ea6c89aa9cafc8fdd18fabfad503eeea.
(Input from various sources)
(Rehash/Pragati Sakhuja/MSM)