Purdue Pharma, the makers of OxyContin are paying for their role in the opioid crisis. According to The New York Times, Purdue filed for Chapter 11 bankruptcy on Sept. 15 as part of a settlement in thousands of state and federal lawsuits. Just two days prior to the filing, it was discovered that nearly a billion dollars had been secretly transferred from Purdue Pharma to the Sackler family.
Terms of the settlement means that the Sackler family, Purdue’s owners, would have to give up ownership of the company and pay $3 billion over the course of seven years to the plaintiffs. However, there are many states refusing to settle and will pursue the lawsuit.
Purdue was allegedly aware of the potential for drug abuse with their products early on, however was marketed as a drug with low addiction rates.
“This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public,” said Steve Miller, Chairman of Purdue’s Board of Directors, in a statement. Purdue would be restructured into a public benefit trust which means profits from OxyContin will go to paying plaintiffs as well as research in treating opioid addiction, according to The New York Times. “This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis. We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible.”
