All 50 states reach agreement on .4 billion settlement with Purdue Pharma.

Purdue Pharma, along with its previous owners from the Sackler family, has reached a settlement agreement amounting to .4 billion to resolve lawsuits filed by all 50 states, four U.S. territories, and Washington, D.C. This agreement, which was finalized on Monday, represents a significant step towards closing a protracted legal battle concerning the company’s role in the ongoing opioid crisis. The settlement was first proposed in March and marks an end to over five years of legal disputes as state attorneys general sought accountability from the manufacturer of OxyContin.

In a statement regarding the settlement, New York Attorney General Letitia James highlighted the impact of the funds, emphasizing that while no monetary compensation can fully redress the damage caused by the opioid epidemic, the settlement will assist communities in combatting this public health crisis. The financial allocation for New York alone is projected to be up to 0 million, a portion of which will be directed towards initiatives aimed at alleviating the effects of opioid addiction and overdoses. Furthermore, the settlement includes provisions that will bar Purdue Pharma and members of the Sackler family from engaging in the manufacture, marketing, or selling of opioids in the future.

Purdue Pharma launched OxyContin, a brand-name version of oxycodone, in 1996. The company generated substantial revenue over the subsequent two decades, reportedly accumulating billions of dollars, even as the opioid crisis escalated, leading to the tragic loss of hundreds of thousands of lives due to overdose. Faced with a multitude of lawsuits and growing scrutiny regarding its practices, Purdue Pharma filed for bankruptcy in 2019.

Despite this bankruptcy, the Sackler family retains an estimated net worth of billion. As part of the settlement agreement, family members are expected to contribute between billion and billion over the next 15 years. The negotiation process leading up to this 50-state settlement has been arduous, with earlier proposals—including a billion deal reached in 2023—failing to gain approval after being rejected by the Supreme Court last year. This latest agreement represents a critical move toward addressing the profound impact of the opioid epidemic across the nation.

The settlement aligns with ongoing efforts to reform pharmaceutical oversight and accountability, particularly concerning practices that have contributed to widespread addiction and health crises in communities nationwide. As states prepare to allocate these funds, the focus will remain on enhancing prevention, treatment, and recovery resources to combat the opioid crisis’s devastating effects.

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