Purdue Pharma, the maker of OxyContin, has put forth a settlement plan worth over 7 billion dollars to resolve thousands of lawsuits related to the impact of opioids on communities.
The settlement proposal will be put up for votes from various stakeholders, including local governments, individuals who suffered from addiction, and other affected groups, following a ruling by US Bankruptcy Judge Sean Lane.
The big picture: The agreement was negotiated between Purdue Pharma, suing parties, and representatives of the Sackler family, the company’s owners.
- Judge Lane’s decision did not involve accepting the settlement itself but ensuring that adequate information is provided for the voters to make an informed decision within the specified timeline.
- Various groups such as government entities, emergency room doctors, insurers, families affected by addiction, individual victims, and more have until September 30 to vote on accepting the settlement plan.
- The primary purpose of the settlement is to avoid lengthy and costly trials, with claims from states alone totaling over 2 trillion dollars in damages.
Go deeper: Forty-nine states have already signed on to the proposal, except for Oklahoma, which has an independent settlement agreement with Purdue Pharma.
- If approved, this settlement will be one of the largest in a series of lawsuits targeting drug manufacturers, wholesalers, and pharmacies over their role in the opioid epidemic that escalated post the introduction of OxyContin in 1996.
- The settlement is around $50 billion in total, with a substantial portion designated for combatting the opioid crisis on a national scale.
- Opioid-related deaths have evolved over the years from prescription drugs like OxyContin to heroin and illicit fentanyl, leading to tens of thousands of fatalities annually. However, the death toll has reduced notably in recent times.
- The new settlement proposal ensures that groups not opting in can still pursue legal actions against the Sackler family, who will relinquish ownership of Purdue Pharma under the plan.
- The Sackler family members have already resigned from Purdue’s board and ceased receiving funds before its bankruptcy filing in 2019, with the remaining entity set to be renamed and profits to be channeled towards combating addiction.
