Purdue and Sacklers agree new $7.4bn opioid settlement

Purdue Pharma and the Sackler family who own the company have proposed a new $7.4 billion settlement to resolve thousands of lawsuits claiming they played a role in driving the opioid addiction crisis in the US.

The new deal on the table – disclosed by several state attorneys general – comes a few months after an earlier settlement valued at around $6 billion was shot down by the Supreme Court of the US (SCOTUS) on the grounds that US law does not give bankruptcy courts the authority to block liability for parties who haven't filed for bankruptcy themselves.

That offer also came under widespread criticism as it would grant the Sacklers immunity from future civil litigation related to the opioid epidemic, which is estimated to have claimed around 700,000 lives over the last 20 years. It did not offer any protection against possible criminal charges, but so far none have been filed.

Now, the Sacklers have agreed to pay $6.5 billion themselves, with another $900 million coming from Purdue, which filed for bankruptcy in 2019. They would relinquish control of Purdue, which would then transform into a new company that would be blocked from selling opioids in the US and would use its profits to fight the crisis and to develop drugs to treat people with opioid use disorder (OUD).

The new deal – which still needs court approval – would also leave the door open for civil lawsuits to be brought by people or organisations who do not wish to participate in the settlement.

A current court order blocking lawsuits against Sackler family members is set to expire on Friday, but may be kept in place while the final details of the new settlement are ironed out, according to Associated Press, which noted that a judge is due to decide on that later today.

It was negotiated by 15 US states, including New York, whose attorney general office said it would help fund opioid addiction treatment, prevention, and recovery programmes in communities across the country over the next 15 years.

"The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fuelling the opioid epidemic," said NY Attorney General Letitia James. "While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal."

Purdue said in a statement that it is "extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives."