Opioid epidemic has the US in its grip
The settlement
Despite the tentative settlement, litigation against Purdue Pharma appears likely to continue. However, the tentative deal and the bankruptcy filing by the company will end the need for the first federal trial involving the opioid epidemic, which was scheduled to start next month in Ohio.
The lawsuits have been consolidated through US District Court Judge Dan Polster in Cleveland. He urged the parties to settle and invited state attorneys general to take an active role in the negotiations.
The tentative deal includes about $3 billion from the Sackler family's fortune. Another $1.5 billion could be added depending on the amount raised from the sale of Mundipharma, a company the family also owns that sells drugs outside the US. The Sacklers would give up their interest in the company and it would be converted to a for-profit trust.
Those backing the proposed settlement said it is a good way to ensure compensation from Purdue Pharma and the Sacklers because the company could file for bankruptcy on its own, clouding future payouts. Other plaintiffs said the offer is too small to adequately compensate those harmed by OxyContin.
Attorneys general in some states in the US are concerned about the value of a settlement involving Purdue Pharma because a portion of the money would come from future sales of OxyContin and products under development. In short, it is a paradox-future payouts would depend on the continued sale of a drug detested by state attorneys general.
In a statement, the Sacklers supported the tentative settlement, calling it "the most effective way to address the urgency of the current public health crisis and to fund real solutions, not endless litigation".
In Los Angeles, Ryan Hampton, an advocate for people recovering from opioid addiction, urged those harmed by the drug to reject the deal.
"The amount of money that's being offered in this settlement doesn't even scratch the surface for what's needed," Hampton told The Associated Press. "We want to see Purdue have their day in court. We know more money will come if this case goes to trial."
