A federal judge has approved the bankruptcy plan from the Sackler family, which will dissolve the OxyContin maker Purdue Pharma and pay the settlement of $4.5 billion for the opioid crisis fueled by the company across the country.
The settlement plan will free the drugmaker from all the future opioid lawsuits. The company will be reorganized with new board members appointed by the public officials. The profits earned by the company will be used to prevent and treat opioid addiction among the masses in the country.
It's been three years since the company filed for bankruptcy due to the 3,000 lawsuits filed against it. The lawsuits were filed by states, local governments, Native American tribes, hospitals, unions and other entities with accusations that the company fraudulently marketed the drug to increase sales and profit.
The settlement would not affect the Sackler family's fortune, but the opioid crisis has damaged the reputation of the family. Many states and the U.S. bankruptcy trustee opposed the settlement and indicated that they would appeal against the decision.
This is not the first time that the company will pay such a penalty. Earlier, in 2007, the company was charged under misled regulators and addiction dangers of OxyContin when Purdue paid $600 million.
The opioid crisis has resulted in more than 500,000 deaths in the U.S. Last year, the data recorded 70,000 deaths due to opioids.