A judge is expected to sentence OxyContin maker Purdue Pharma to forfeit $225 million to the Justice Department on Tuesday, clearing the way for the company to finalize a settlement of thousands of lawsuits it faces over its role in the opioid crisis. The penalty was agreed to in a 2020 pact to resolve federal civil and criminal probes it was facing. If the judge signs off, other penalties will not be collected in return for Purdue settling the other lawsuits.
After years of legal twists and turns, the settlement was approved by another judge last year and could take effect May 1. It requires members of the Sackler family who own the company to pay up to $7 billion to state, local and Native American tribal governments, some individual victims, and others.
Purdue pleaded guilty to three federal criminal charges in November 2020, admitting that it lacked an effective program to prevent its powerful prescription painkillers from being diverted to the black market. It also acknowledged paying doctors to prescribe its drugs, contributing to the escalation of opioid use.
While Purdue is set to pay $225 million, the government has agreed not to pursue $5.3 billion in criminal forfeitures and fines and $2.8 billion in civil liabilities as part of the plea deal. The broader settlement sees Sackler family members contributing a substantial amount over 15 years, primarily targeting the opioid crisis.
Notably, the Sackler family members have not been charged despite having received significant payments from Purdue, totaling $10.7 billion between 2008 and 2018. Under the settlement, they are shielded from lawsuits from those who agree to the payments. Purdue is expected to dissolve and be replaced by Knoa Pharma, a newly created entity designed to operate for public benefit.
However, some victims and families continue to call for further prosecutions against the Sacklers, arguing that the settlement falls short of justice given the over 900,000 overdose deaths linked to opioids in the U.S. since 1999. Tuesday’s sentencing acts as an opportunity for victims to voice their concerns, emphasizing that funds allocated to government entities must be used effectively to combat the opioid epidemic.
After years of legal twists and turns, the settlement was approved by another judge last year and could take effect May 1. It requires members of the Sackler family who own the company to pay up to $7 billion to state, local and Native American tribal governments, some individual victims, and others.
Purdue pleaded guilty to three federal criminal charges in November 2020, admitting that it lacked an effective program to prevent its powerful prescription painkillers from being diverted to the black market. It also acknowledged paying doctors to prescribe its drugs, contributing to the escalation of opioid use.
While Purdue is set to pay $225 million, the government has agreed not to pursue $5.3 billion in criminal forfeitures and fines and $2.8 billion in civil liabilities as part of the plea deal. The broader settlement sees Sackler family members contributing a substantial amount over 15 years, primarily targeting the opioid crisis.
Notably, the Sackler family members have not been charged despite having received significant payments from Purdue, totaling $10.7 billion between 2008 and 2018. Under the settlement, they are shielded from lawsuits from those who agree to the payments. Purdue is expected to dissolve and be replaced by Knoa Pharma, a newly created entity designed to operate for public benefit.
However, some victims and families continue to call for further prosecutions against the Sacklers, arguing that the settlement falls short of justice given the over 900,000 overdose deaths linked to opioids in the U.S. since 1999. Tuesday’s sentencing acts as an opportunity for victims to voice their concerns, emphasizing that funds allocated to government entities must be used effectively to combat the opioid epidemic.
