Sacklers Boost Offer in Revised Opioid Settlement

Sacklers Boost Offer in Revised Opioid Settlement

Introduction

The Sackler family, owners of Purdue Pharma, have proposed increasing their contribution to a bankruptcy settlement addressing opioid lawsuits.

Payments to be raised from $6bn to $6.5bn

Reports indicate some family members have agreed to raise their payment to $6.5 billion, up from $6 billion in a previous plan, while accepting limited exposure to future litigation. These developments are part of confidential mediation discussions.

The company faces thousands of lawsuits

Purdue Pharma, based in Stamford, Connecticut, along with the Sackler family, faces thousands of lawsuits from state and local governments alleging the company’s deceptive marketing of OxyContin contributed to the deadly opioid crisis in the United States. Over the past two decades, opioid overdoses have claimed over 500,000 lives.

The company declined to comment

While declining to comment on specific settlement terms due to confidentiality agreements, Purdue stated they are engaged in productive mediation to finalize a plan aimed at maximizing opioid abatement efforts and allowing the company to emerge from bankruptcy as a force for good.

$6 billion bankruptcy settlement blocked last year

Last year, the U.S. Supreme Court blocked a $6 billion bankruptcy settlement that would have shielded Sackler family members from lawsuits linked to their role in the opioid epidemic. Representatives for the Sackler family declined to comment further, citing the ongoing nature of negotiations.

The proposed settlement includes compensation for all claimants from Purdue Pharma. Additionally, the Sackler family would offer a separate settlement in exchange for claimants waiving opioid-related claims against them. Claimants opting out of the agreement retain the right to pursue litigation against the Sacklers individually.

Settlement discussions remain ongoing, and details are subject to court approval and further negotiation.