Attorney General Ken Paxton announced that a $7.4 billion settlement with Purdue Pharma, Inc. (“Purdue”) and its owners, the Sackler family, has become legally effective.
This settlement holds the company accountable for its role in fueling the opioid crisis. Texas is expected to receive $286.5 million from the settlement. Attorney General Paxton has now secured a total of over $3 billion in opioid settlement funds.
Purdue filed bankruptcy in September 2019 following an investigation by a coalition of 55 states and territories and a 2018 lawsuit by Attorney General Paxton. Following this, Attorney General Paxton played a lead role in the bankruptcy proceedings. This included negotiating a new settlement. The settlement gives funds to communities across the country, as well as individual victims and other groups who filed claims in the bankruptcy case.
“For years, I have fought relentlessly to ensure Big Pharma pays for its role in causing the opioid crisis, and this settlement is an important step in securing justice for victims,” said Attorney General Paxton. “While no amount of money can undo the devastation caused by the opioid crisis, these funds will be used to both hold Purdue Pharma and the Sackler family accountable as well as help those affected to recover and rebuild.”
Additionally, the settlement permanently bars the Sacklers from selling opioids in the U.S. and delivers funds for addiction treatment, prevention, and recovery to communities across the country over the next 15 years. Most settlement funds will be distributed to the states in the first three years. The Sacklers are paying more than $1.5 billion today, followed by approximately $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Additionally, Purdue is paying approximately $900 million today.
The settlement also means that Purdue’s manufacturing operations transfer effective today to Knoa Pharma LLC (“Knoa”), which will be overseen by a board of directors who had no connection to Purdue. The settlement prevents Knoa from marketing opioids and establishes an independent monitor that will limit the risk of diversion—which is the unlawful transfer or theft of prescription opioids. The settlement also ensures Purdue and the Sacklers will make public more than 30 million documents related to their opioid business.
Article source and photo credit: Texas Attorney General
