$7 Billion Deal in Sight: Purdue Pharma’s Opioid Settlement Gains Full State Support!

Written by: Sachin Mane

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A revised settlement plan from OxyContin manufacturer Purdue Pharma is gaining momentum as all U.S. states involved—except one—have now agreed to it. The proposed deal, which aims to resolve thousands of lawsuits tied to the opioid epidemic, could soon proceed to a vote by local governments and individual victims.

A judge is expected to give the green light for voting to begin, with a deadline of September 30 set for affected groups to cast their decisions. These include local and state government bodies, medical professionals, insurance companies, families of infants born with withdrawal symptoms, and individual victims and their families.

The agreement involves the Sackler family, owners of Purdue Pharma, contributing up to $7 billion over a 15-year period. The goal is to avoid court trials where combined state claims alone could exceed $2 trillion in damages. Thousands of other plaintiffs—including municipalities and health organizations—have also filed lawsuits against the company.

Oklahoma, the only state not participating, reached its own settlement with Purdue back in 2019.

If accepted, the deal would become one of the largest settlements in a decade-long series of lawsuits targeting pharmaceutical companies, distributors, and retailers for their roles in fueling the opioid crisis. Collectively, these settlements are worth around $50 billion, with most funds earmarked for addiction treatment and prevention programs.

In the early 2000s, opioid-related deaths were largely driven by prescription drugs like OxyContin. Over time, however, the crisis shifted toward heroin and illicit fentanyl, both of which have become leading causes of overdose deaths. While opioid-related fatalities have peaked at over 80,000 per year, there was a noticeable decline in the past year.

This new push comes after the U.S. Supreme Court blocked an earlier version of Purdue’s plan, objecting to provisions that would have shielded the Sackler family from future lawsuits despite their not declaring bankruptcy. In the revised version, non-participating parties retain the right to sue individual Sackler family members.

The Sacklers have agreed to surrender ownership of Purdue Pharma. They had already stepped down from the company’s board and stopped receiving profits before Purdue’s bankruptcy filing in 2019. The company would be rebranded, and its future earnings would be dedicated solely to addressing the opioid epidemic.

Unlike most previous settlements, this plan includes direct compensation for individuals, with more than $850 million potentially going to victims and their families. The remainder would support state and local initiatives tackling addiction and overdose.

Final approval of the plan will depend on the outcome of a scheduled hearing on November 10, where the judge will assess whether enough parties have agreed to the terms.

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Walgreens to pay up to $350 million in U.S. opioid settlement

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