New York Attorney General Letitia James recently announced a new $7.5 billion settlement with Purdue Pharmaceuticals and the Sackler Family, marking a pivotal moment in the ongoing legal battles stemming from the US opioid crisis. This settlement comes as part of continuous legal efforts to hold Purdue accountable for its role in the epidemic, where opioid OxyContin was misleadingly marketed as a non-addictive painkiller starting in the late 1990s.
This agreement follows a prior settlement that was overturned by the US Supreme Court in June 2024. The Court’s decision, split 5-4, rejected provisions that would have provided broad immunity to the Sacklers against future liabilities related to the opioid crisis, prompting both parties to return to negotiations. The new settlement circumvents the contentious immunity clauses by instituting “consensual releases in exchange for payments,” therefore aligning with the judicial precedent set by the Supreme Court’s ruling.
Purdue Pharma faced numerous lawsuits due to its aggressive sale strategies from 1996 to 2019, which led to significant financial gains. The company’s prior admission of guilt in falsely promoting the drug paved the way for these lawsuits, culminating in this latest legal resolution. The settlement not only compels the Sacklers to divest from Purdue but also prohibits the company from selling opioids within the United States. These measures accompany financial compensations designed to aid affected communities, tribal governments, and individual plaintiffs.
Attorney General Letitia James acknowledged that while financial restitution is inadequate to address the epidemic’s human toll, the funds could facilitate recovery efforts. “The Sacklers no longer have control of Purdue and will never be allowed to sell opioids in the United States again,” she emphasized. The agreement stipulates that approximately $2.5 billion will be dispensed in the first three years, pending court approval linked to Purdue’s 2019 bankruptcy filing.
For more information, visit the original publication on JURIST.