OxyContin maker Purdue Pharma is set to dissolve and be replaced by a new company called Knoa Pharma, operating in the public interest, as a sweeping settlement of thousands of lawsuits goes into effect on Friday. The settlement is among the largest in a series of deals over the toll of opioids, and is particularly notable as many blame the company's marketing of OxyContin for sparking the US opioid epidemic.
Under the terms, the Sackler family, who previously owned Purdue, will contribute at least $6.5 billion, give up any interest in the drugmaker, and forfeit control. Knoa Pharma's board will be appointed by states and tasked with fighting the opioid epidemic. The settlement money will be paid out over a number of years, with the largest instalments arriving early.
The US Supreme Court earlier rejected a previous version of the deal, ruling that Sackler family members would have improperly received personal protection from lawsuits. In the final settlement, groups that reject payments can still sue members of the family.
From 2008 to 2018, Sackler family members received substantial payouts from Purdue, nearly half of which went to taxes. A congressional report estimated their net worth at $11 billion. As part of the deal, thousands of company documents will be made public, to be maintained by the University of California San Francisco and Johns Hopkins University.
Individuals who can prove they were harmed by Purdue opioids prescribed to them may receive a maximum payout, the only opioid industry settlement to include direct compensation to victims or their survivors.
