By: Christopher Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, Ma.
A Health Care Provider Defense and Compliance Firm

In a significant development addressing the opioid crisis, Purdue Pharma and its owners, the Sackler family, have agreed to a $7.4 billion settlement to resolve numerous lawsuits related to their role in the epidemic. This agreement, announced on January 23, 2025, comes after the U.S. Supreme Court rejected a previous $6 billion settlement that would have granted the Sacklers immunity from future civil lawsuits.

theguardian.com

Key Components of the Settlement:

• Financial Contributions: The Sackler family will pay up to $6.5 billion over 15 years, while Purdue Pharma will contribute nearly $900 million upon court approval.
• Allocation of Funds: The settlement funds are designated to support opioid addiction treatment and prevention programs across the United States. For instance, Massachusetts is set to receive up to $108 million from the settlement.
• Structural Changes: The Sacklers will relinquish control of Purdue Pharma, and the company will be restructured with a board appointed by the states. Additionally, the Sacklers are prohibited from engaging in the opioid business in the U.S.

Background:

Purdue Pharma, the maker of OxyContin, has been at the center of the opioid crisis, which has led to over 600,000 deaths in the U.S. over the past two decades. The company filed for bankruptcy in 2019 amid a surge of lawsuits alleging that it misled doctors and patients about the addictive nature of OxyContin.

Next Steps:

The settlement awaits court approval and requires consensus from various plaintiffs, including state and local governments. Notably, this agreement does not grant the Sackler family immunity from future civil lawsuits by parties that do not sign the settlement, leaving the possibility open for additional legal actions.

Conclusion:

This settlement represents a pivotal moment in the ongoing efforts to address the opioid epidemic and hold accountable those responsible for its proliferation. The settlement proceeds and terms of the Agreement aim to provide significant resources for combating opioid addiction and supporting affected communities nationwide in the future.