Pennsylvania is poised to receive $212 million over the next 15 years as part of a sweeping $7.4 billion settlement with Purdue Pharma Inc. and the Sackler family who owned it.
The settlement is still pending court approval, Pennsylvania Attorney General Dave Sunday announced Thursday.
Officials in states and local governments claimed that the opioid crisis was exacerbated by Purdue Pharma’s OxyContin and actions taken to hide how addictive it is.
The settlement stems from the family and their company’s role in the opioid crisis. It followed previously settlement on the matter that was overturned last year by the U.S. Supreme Court.
“No dollar amount could ever replace what has been lost due to the opioid epidemic, but this settlement will go a long way in bolstering treatment resources and helping Pennsylvanians achieve recovery,” Sunday said. “This epidemic, no doubt, was fueled by Purdue Pharma’s manufacturing and deceptive marketing of OxyContin, a highly potent and addictive drug. Dependency on the drug ruined countless lives, while the Sackler family and Purdue made more than $35 billion from its distribution, profiting off of the suffering of others.”
As part of the settlement, the Sacklers are relinquishing control over Purdue. It also stipulates that Purdue will no longer market or sell opioids in the U.S.
Under the terms of the settlement, impacted states, local governments, individuals, and other parties previously suing Purdue or the Sacklers will receive funds.
For governments, the money will be aimed at bolstering opioid addiction treatment, prevention, and recovery services.
Pennsylvania Attorney General’s Office spokesperson Brett Hambright said there is not yet a breakdown of how the money in the state will be divided.
James O’Malley, a Bucks County government spokesperson, said details on funds the county could receive from the new settlement were not yet known.
The payout schedule in the settlement includes $1.5 billion from the Sacklers in the first year, with Purdue contributing nearly $900 million, followed by additional payments totaling $1.4 billion over the next two years. Further payments will follow.
The settlement will also result in the release of more than 30 million documents related to Purdue’s opioid business and allow an unprecedented look into the company’s operations.
According to court filings, the Sacklers gained $11 billion from the drug company before it went bankrupt and used overseas accounts. This came as the company knew its painkiller product was being abused.
In addition to Pennsylvania, the attorneys general of New York, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Tennessee, Texas, Vermont, Virginia, and West Virginia worked on the settlement announced Thursday.
A 2022 separate settlement between the state and three major pharmaceutical distributors – Cardinal, McKesson, and AmerisourceBergen – and Johnson and Johnson locked in more than $1 billion that will be paid out in Pennsylvania over the next 15 years. Bucks County will receive $45 million of that $26 billion nationwide opioid agreement.
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