Federal Judge to Approve Purdue Pharma's $7 Billion Opioid Settlement
A federal bankruptcy court judge, Sean Lane, announced his intention to approve Purdue Pharma's latest settlement aimed at resolving thousands of opioid-related lawsuits.
The deal mandates that Sackler family members, owners of Purdue, contribute up to $7 billion and relinquish ownership of the Connecticut-based pharmaceutical company.
This settlement replaces a prior plan rejected by the US Supreme Court last year due to its improper protection of family members from future lawsuits.
Judge Lane planned to publicly explain his decision during a hearing scheduled for Tuesday.
The settlement is a key part of a broader set of opioid settlements amounting to about $50 billion, addressing the nationwide opioid crisis tied to nearly 900,000 US deaths since 1999. These deaths include those from heroin and illicit fentanyl following reductions in OxyContin supply.
Legal proceedings involving Purdue Pharma are among the most complex in US bankruptcy history, with the company having filed for bankruptcy protection six years ago amid mounting lawsuits valued in the trillions.
The Sackler family, previously prominent philanthropists, have experienced significant reputational damage amid ongoing investigations into Purdue's marketing practices related to opioids.
