Purdue Pharma Agrees to $8 Billion Settlement in Ongoing Opioid Crisis Litigation

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States agree to $7.4 billion settlement with Purdue Pharma in opioid litigation
Wednesday. This settlement comes after years of litigation and accusations that Purdue Pharma fueled the opioid crisis by aggressively marketing their highly addictive painkiller. The settlement includes a $3.5 billion payment from the Sackler family, the owners of Purdue Pharma, and the dissolution of the company. The remaining $4.5 billion will be paid over the next nine years to fund addiction treatment and prevention programs. While some state attorneys general have voiced their support for the settlement, others have expressed concerns that it does not hold the Sackler family personally accountable. The settlement also does not release the Sacklers from potential criminal liability. This landmark agreement is a major step towards addressing the devastating impact of the opioid crisis on communities across the country. It is the largest settlement to date in the ongoing legal battle against opioid manufacturers and distributors. The money from the settlement will help support efforts to combat addiction and provide much-needed resources for those affected by the crisis. However, the agreement does not absolve Purdue Pharma or the Sackler family from other pending lawsuits. The company still faces thousands of individual lawsuits from states, cities, and other entities seeking to hold them accountable for the opioid epidemic. This settlement is a significant development in the fight against the opioid crisis, but there is still much work to be done to address the damage caused by Purdue Pharma's actions."

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Purdue Pharma

Purdue Pharma, originally founded in 1892 as the Purdue Frederick Company by doctors John Purdue Gray and George Frederick Bingham in New York, evolved into a major American pharmaceutical firm specializing in pain management medications[1][6]. In 1952, the Sackler brothers—Arthur, Raymond, and Mortimer—acquired the company, relocating it to New York and expanding operations. Incorporated as Purdue Pharma L.P. in 1991, the firm became a pioneer in developing opioid-based drugs, notably releasing the extended-release morphine MS Contin in 1984 and the opioid OxyContin in 1996[1]. OxyContin, a controlled-release formulation of oxycodone, was aggressively marketed as providing "smooth and sustained pain control" with a convenient 12-hour dosing schedule. Purdue’s marketing strategies, however, have been widely criticized for downplaying the drug’s addiction risks, including false claims to doctors that addiction occurred in fewer than one percent of cases[2][3]. Such practices significantly contributed to the U.S. opioid epidemic, with nearly 400,000 opioid overdose deaths reported between 1999 and 2017. Internal company documents revealed efforts to target non-cancer chronic pain patients and to resist regulatory challenges to OxyContin sales[3][4]. Purdue and several executives pleaded guilty in 2007 to criminal charges related to misleading the public about the drug’s addictive potential[2]. Despite the controversy, Purdue Pharma employed around 1,700 people as of 2015 and sought to diversify its portfolio, including acquiring VM Pharma to access novel drug candidates[1][5]. The company filed for bankruptcy in 2019 amid thousands of lawsuits linked to the opioid crisis. Under a reorganization plan, Purdue’s assets are being transferred to a new entity governed by an independent board, with commitments to fund opioid crisis abatement programs and continue developing medicines responsibly[5]. Notably, Purdue Pharma’s history is deeply intertwine

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