A federal bankruptcy court judge has formally approved the plan by OxyContin maker Purdue Pharma to settle thousands of lawsuits over the harms of opioids. The deal requires members of the Sackler family, who own the company, to contribute up to $7bn over 15 years, with most of the money going to government entities to combat the opioid crisis that has been linked to 900,000 deaths in the United States since 1999.
The new agreement, approved by US bankruptcy Judge Sean Lane, replaces one rejected last year by the US Supreme Court, which found it would have improperly protected the Sackler family against future lawsuits. Under the current settlement, entities that do not opt into the payments can still sue family members. Sackler family members, who have not been directly involved with the company for seven years, will give up ownership and be barred from selling opioids anywhere in the world. The company will eventually be renamed Knoa Pharma and operate with a public-interest mission.
The approved deal is among the largest in a series of opioid settlements brought by state and local governments against drugmakers, wholesalers and pharmacies that total about $50bn. A portion of the money will be distributed next year to individuals who were prescribed OxyContin and their survivors, with payments of approximately $8,000 or $16,000 depending on how long they received the drug and how many others qualify.
Sackler family members have also agreed not to have their name placed on institutions in exchange for contributions, a practice they have often followed in the past. Purdue will make public a trove of internal documents that could shed light on how the company promoted and monitored opioids. Unlike the previous settlement, this one does not require Sackler family members to hear directly from people harmed by OxyContin.
Purdue filed for bankruptcy protection in 2019 amid thousands of opioid-related lawsuits. A judge approved a settlement two years later, but the Supreme Court rejected it because it gave Sackler family members protection from lawsuits even though they were not personally declaring bankruptcy. The latest plan allows lawsuits against family members by those who do not opt into the deal, and few parties objected during the confirmation hearing.
