After years of avoiding accountability, the Sackler family is finally forced to pay $7.4 billion for their role in America’s devastating opioid epidemic that has claimed hundreds of thousands of lives.
Key Takeaways
- All 50 states, Washington D.C., and four U.S. territories unanimously approved the $7.4 billion settlement with Purdue Pharma and the Sackler family
- The settlement ends the Sackler family’s control of Purdue Pharma and prohibits them from selling opioids in the United States
- Funds will be distributed over 15 years, with most allocated in the first three years for addiction treatment, prevention, and recovery programs
- Unlike previous overturned settlements, this agreement allows individuals to maintain their rights to sue the Sacklers in civil court
- Critics argue the $850 million allocated for direct victim compensation is insufficient given the scale of suffering caused
A Landmark Settlement After Multiple Failed Attempts
Following intervention by the Supreme Court in December 2023, Purdue Pharma and the Sackler family have reached a comprehensive $7.4 billion settlement with unanimous approval from all 50 states, Washington D.C., and four U.S. territories. This agreement comes after years of legal battles, including Purdue’s 2019 bankruptcy filing and two previously overturned settlements – a 2021 plan that would have protected the Sacklers from future lawsuits and a subsequent $6 billion agreement rejected by the Supreme Court. The new settlement represents a significant increase in financial accountability while removing protections that previously shielded the family from further legal action.
The settlement structure requires the Sackler family to make an initial payment of $1.5 billion, with Purdue contributing approximately $900 million. The remaining funds will be paid over 15 years, with the Sacklers expected to contribute approximately $6.5 billion of the total $7.4 billion package. Most funds will be distributed to states in the first three years, providing immediate resources for communities devastated by opioid addiction. Purdue filed a new bankruptcy plan in March to facilitate this settlement, which is still pending approval from the bankruptcy court.
End of the Sackler Family’s Opioid Empire
A critical component of the settlement is the complete removal of the Sackler family from the opioid business in America. The agreement terminates their control over Purdue Pharma and explicitly prohibits them from selling opioids in the United States. A board of trustees will determine the future of the company, which will be placed under strict monitoring to prevent lobbying or marketing of opioid products. This represents a decisive end to the family’s decades-long control over a pharmaceutical empire that aggressively marketed OxyContin despite mounting evidence of its addictive properties.
“While we know that no amount of money can erase the pain for those who lost loved ones to this crisis, this settlement will help prevent future tragedies through education, prevention, and other resources,” said New Jersey Attorney General Matthew Platkin.
Despite the settlement’s magnitude, the Sacklers have steadfastly maintained they did nothing wrong throughout the legal proceedings. This position continues to infuriate victims’ families and addiction advocates who point to internal company documents showing Purdue executives were aware of OxyContin’s dangers while aggressively marketing the drug as safe. The family’s refusal to admit wrongdoing, even as they pay billions, demonstrates the limits of financial settlements in achieving moral accountability for a crisis that has devastated communities across America.
Funds for Prevention and Treatment, But Is It Enough?
The $7.4 billion settlement joins over $50 billion in payouts from various corporations involved in the manufacture and distribution of opioid painkillers. States and territories plan to use these funds to support opioid addiction treatment, prevention, and recovery programs over the next 15 years. Each state will decide how to allocate its portion, with many developing plans to distribute resources to counties and municipalities most severely impacted by the crisis. Recent data shows opioid overdose deaths have decreased to pre-pandemic levels, though each case of opioid use disorder continues to cost nearly $700,000 in healthcare and lost productivity.
“As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products. This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth. My office will continue engagement with municipal leaders to ensure millions of dollars reach every corner of the state,” said Pennsylvania Attorney General Dave Sunday.
While state officials celebrate the settlement, some advocates have criticized it for allocating only about $850 million to compensate direct victims and their families. This amount, they argue, is woefully insufficient given the hundreds of thousands of deaths and millions of lives destroyed by opioid addiction. Critics point out that the Sackler family withdrew over $10 billion from Purdue before the company’s bankruptcy filing, meaning they will likely retain significant wealth even after fulfilling the settlement’s terms. This stark disparity between the family’s fortune and the compensation for victims continues to generate outrage.
“There will never be enough justice, accountability, or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family’s craven misconduct. What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles all the way up to the U.S. Supreme Court,” said Connecticut Attorney General William Tong.
