Investing.com -- New York Attorney General Letitia James announced today a $7.4 billion settlement with Purdue Pharma Inc. and the Sackler family, marking the nation's largest settlement to date with individuals responsible for contributing to the opioid crisis. This settlement comes after the United States Supreme Court overturned a prior multistate settlement with the Sacklers and Purdue in June 2024.
The Sackler family and their company Purdue Pharma have been held accountable for their significant role in creating and fueling the opioid crisis. Purdue, under the Sacklers’ leadership, was involved in the invention, manufacturing, and aggressive marketing of opioid products for decades, leading to widespread addiction and overdose deaths across the country.
The Sackler family will pay up to $6.5 billion over the next 15 years, and Purdue Pharma will contribute nearly $900 million upon court approval. The funds will be used to support opioid addiction treatment, prevention, and recovery programs across the nation. A significant portion of the settlement funds will be distributed within the first three years, with $1.5 billion paid out in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.
New York will receive up to $250 million from the settlement to support opioid abatement programs throughout the state. With this settlement, Attorney General James has secured more than $3 billion for New York state from opioid manufacturers and distributors for their role in the opioid epidemic.
The settlement also signifies the end of the Sacklers’ control of Purdue and prohibits them from selling opioids in the United States. A board of trustees, selected by the participating states in consultation with other creditors, will determine the future of Purdue Pharma. The company will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement terms.
The settlement in principle includes the eight heirs of Purdue founders Raymond (NSE:RYMD) and Mortimer Sackler who served on the Board of Purdue: Richard, Kathe, Mortimer Jr., Ilene, David, and Theresa Sackler; and the estates of Jonathan and Beverly Sackler. Their associated trusts, advisers, and most of their children and heirs are also included.
The settlement was secured by the attorneys general of several states including California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia, alongside New York.
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