Purdue Pharma, the maker of OxyContin, and members of the Sackler family who own it are seeking court approval for a bankruptcy settlement plan to resolve thousands of lawsuits related to the opioid crisis. The proposed deal aims to provide billions in payments and establish a fund to combat the ongoing opioid epidemic.
The settlement requires the Sackler family to contribute up to $7 billion and relinquish ownership of Purdue Pharma. The company will be renamed and overseen by new leadership dedicated to opioid crisis mitigation. Importantly, a portion of the settlement funds, approximately $850 million, will be allocated to individuals harmed by Purdue's opioid products, with specific provisions for children born with opioid withdrawal symptoms.
While the vast majority of parties, including states, cities, counties, Native American tribes, and individuals with addiction, are in favor of the plan, a small number of objectors have voiced concerns. Some argue that the allocated funds are insufficient for victims, while others desire criminal accountability for the Sackler family. The bankruptcy judge has stated that criminal liability falls outside the scope of the bankruptcy court, but the settlement does not prevent prosecutors from pursuing such actions independently.
The settlement's primary beneficiaries will be state and local governments, which will receive the majority of the funds to support their efforts in addressing the opioid crisis. This agreement represents a significant step in concluding the legal proceedings stemming from Purdue Pharma's role in a crisis that has caused hundreds of thousands of deaths in the United States since 1999.
