Purdue Pharma Sentenced to Forfeit $225m in Opioid Criminal Case
A federal judge is poised to sentence Purdue Pharma, the manufacturer of OxyContin, to forfeit $225 million to the U.S. Department of Justice. This move paves the way for the company to finalise a comprehensive settlement addressing thousands of lawsuits related to its role in the devastating opioid crisis. The forfeiture stems from a 2020 agreement to resolve federal civil and criminal investigations, with approval expected to trigger broader legal resolutions.
Details of the Settlement and Sackler Family Involvement
Under the settlement, which was approved by a judge in November and could take effect from 1 May, members of the Sackler family, who own Purdue Pharma, are required to pay up to $7 billion over 15 years. These funds will be allocated to state, local, and Native American tribal governments, as well as some individual victims and other entities. In return, the government has agreed not to collect additional penalties, including $5.3 billion in criminal forfeitures and fines and $2.8 billion in civil liabilities, with portions integrated into the broader settlement.
Purdue Pharma pleaded guilty to three federal criminal charges in November 2020, admitting it lacked an effective program to prevent its prescription painkillers from being diverted to the black market, despite claims to the Drug Enforcement Administration. The company also acknowledged paying doctors through a speakers program to prescribe opioids and compensating an electronic medical records company to encourage more opioid prescriptions.
Impact on Victims and Public Response
This settlement is part of a series exceeding $50 billion from drugmakers, wholesalers, and pharmacies, with Purdue's deal being notable for including payments to individual victims or their survivors. However, it has faced criticism from some victims and families who argue it falls short of justice. For instance, Susan Ousterman, whose son died from an overdose in 2020, has organised efforts to deliver victim impact statements, urging the rejection of the plea deal and pursuit of criminal charges against Sackler family members.
More than 54,000 personal injury claimants voted to accept the settlement, with only 218 opposing it. The opioid crisis has been linked to approximately 900,000 deaths in the U.S. since 1999, highlighting the profound impact of this case.
Corporate Restructuring and Broader Implications
As part of the settlement, Purdue Pharma will cease operations and be replaced by Knoa Pharma, a new company operating for public benefit with a board appointed by states. This reorganization is described as one of the most complex ever, with over $1 billion paid to legal professionals by the end of last year. The Sackler family, who received $10.7 billion from Purdue between 2008 and 2018, will be shielded from future opioid lawsuits under the agreement and have not objected to the removal of their names from institutions they supported.
The sentencing represents a critical moment for victims seeking accountability, as they continue to advocate for more stringent actions against individuals involved in the crisis.
