Purdue Pharma, the pharmaceutical company that’s largely responsible for the opioid crisis, has received support from the attorney’s general of 55 U.S. states and territories for a USD$7.4 billion settlement.
The framework for the settlement had originally come about in January, spearheaded by New York Attorney General Letitia James and other states. But the support announced on Monday could help the former pharma-giant actually win approval for its bankruptcy proceedings.
The settlement will be used to resolve thousands of lawsuits against the company and its owners, the Sackler family.
“For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic,” James said in a statement.
“While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis.”
Several attorneys general say Monday’s agreements do not include Oklahoma. In 2019, Oklahoma reached a USD$270 million settlement with Purdue Pharma and the Sacklers to resolve opioid-related claims.
Last June, the U.S. Supreme Court rejected an earlier settlement that would have given the Sacklers broad immunity from opioid-related civil lawsuits. Under that settlement, the Sacklers would have paid about $6 billion.
More than 850,000 people have died from opioid-related overdoses since 1999, according to the U.S. Centers for Disease Control and Prevention. However, deaths have recently declined.
In 2022, Purdue agreed to pay $150 million to Canadian provinces and territories. This settlement resolved a class-action lawsuit against the company over the opioid crisis in Canada. Additionally, this was the largest settlement for a government health claim in Canadian history.
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Billions of dollars a wrist-slap: critics
The opioid epidemic has devastated both Canadian and American societies, causing immense loss and suffering.
Millions of people have struggled with addiction, tearing apart families and communities. In the United States, over 850,000 people have died from opioid-related overdoses since 1999, leaving a lasting impact on public health and social systems. Canada has faced a similar crisis, with thousands of deaths and countless more affected by addiction.
Beyond the tragic loss of life, the epidemic has strained healthcare resources, overwhelmed addiction treatment centers, and increased the burden on law enforcement and social services.
Many individuals have lost jobs, homes, and relationships due to addiction. Families endure emotional trauma, grief, and financial hardship. Additionally, the crisis has heightened awareness about the risks of prescription opioids and fuelled calls for improved mental health and addiction support.
Both countries continue to face challenges in healing and preventing future harm from this ongoing epidemic.
Critics argue that the billions Purdue Pharma has been forced to pay do not fully address the opioid epidemic’s damage. Many say the settlements are too small and allow the Sackler family to avoid true accountability. Massachusetts’ Attorney General Maura Healey has called the settlements inadequate. She stresses the need for transparency and a complete wind-down of Purdue Pharma.
Additionally, advocacy groups have condemned the settlements as a betrayal to the families harmed by the crisis.
They point out that the penalties are minimal compared to the huge profits Purdue made from OxyContin sales. Also, some victims’ families and activists criticize the deals for letting the Sacklers keep much of their wealth and avoid criminal charges. They argue the settlements focus on money rather than real justice.
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