End Substance Use Disorder Statement on Court’s Ruling to Overturn Purdue Pharma Settlement
Today, a U.S. District Court judge struck down a $4.5 billion settlement agreement with Purdue Pharma, maker of Oxycontin, regarding its role in fueling the opioid overdose crisis. The settlement agreement would have released the Sackler family, the billionaire owners of Purdue Pharma, from any legal liability for their role in the overdose crisis.
End Substance Use Disorder had previously criticized the settlement and applauded the U.S. Department of Justice for filing a motion to stop the agreement. The organization released this statement:
“We support the decision of the U.S. District Court that recognizes this settlement for what it is - a miscarriage of justice that would have let the Sackler family walk away with billions made on the lives of our loved ones lost to overdoses.” said Erin Schanning, president of End Substance Use Disorder and big sister who lost her little brother to an overdose. “No amount of money can put the Sacklers above the law. They must be held accountable for their wrongdoing and greed.”
The settlement agreement was first announced in July 2021. A U.S. bankruptcy court approved the agreement in September, a ruling that the U.S. Department of Justice then appealed. Purdue Pharma stated that it plans to appeal the U.S. District Court’s ruling today.
The settlement agreement would cover thousands of lawsuits brought by state and local governments, tribal nations, hospitals and individuals who have been impacted by the opioid epidemic.
Under the settlement agreement, Purdue Pharma would be dissolved and would pay $4.5 billion over nine years. The Sackler family, which owns the company, would pay an additional $50 million. The company would also release documents relating to its role in fueling sales of Oxycontin, which it knew to be highly addictive, to vulnerable communities. In exchange, Purdue Pharma and the Sackler family would not admit to any wrongdoing and the Sacklers would be released from liability for opioid-related lawsuits. The Sacklers are one of the richest families in the world, with a total net worth estimated at $11 billion made almost exclusively from Oxycontin.
End Substance Use Disorder has joined with leading organizations to endorse a set of guiding principles for how states, cities, and counties should use funds received from the opioid litigation. More than 40 million Americans are currently suffering from substance use disorder, and it is vital that the funds from all settlements and litigation related to the overdose crisis be dedicated to prevention, treatment, harm reduction, and recovery supports that are firmly rooted in evidence.