Attorney General Ken Paxton, along with a coalition of all 55 attorneys general from states and U.S. territories, announced a monumental $7.4 billion settlement with Purdue Pharma, as well as with the company's owners, the Sackler family. This agreement aims to resolve ongoing litigation against both the pharmaceutical corporation and the Sacklers for their significant roles in the nationwide opioid epidemic, according to a recent statement released by the Texas Attorney General's Office.
"No person or company, no matter how powerful, is above the law. Purdue Pharma and the Sackler family fueled an opioid epidemic that devastated Texas families and communities," Paxton said in the press release. "This $7.4 billion settlement is a major victory in our ongoing fight to ensure Big Pharma pays for the damage it caused and to bring justice to the people of Texas." Local governments across the nation are now being asked to join in on this settlement, however, their participation will depend on the outcomes of the bankruptcy court proceedings.
The settlement marks an end to the Sacklers’ direct involvement with Purdue and establishes a prohibition on their ability to sell opioids in the U.S. Over the next 15 years, funds from the settlement will be directed to communities to aid addiction treatment, prevention efforts, and recovery initiatives. As detailed by the Texas Attorney General's statement, Texas state and local governments stand to receive up to $286.6 million from the settlement over this period.
Initial distributions of the settlement funds will be significantly front-loaded, with the majority being issued within the first three years. In the first installment, the Sacklers will pay $1.5 billion, and Purdue will contribute approximately $900 million, followed by, $500 million after one year, another $500 million after two years, and $400 million after three years. Much like previous opioid settlements, the agreement with Purdue and the Sacklers seeks to address the legal claims of state and local governments.
Paxton has been on a determined quest to hold pharmaceutical companies accountable for their contribution to the opioid crisis. Including this settlement, the Attorney General has procured nearly $3.3 billion for Texas from corporations associated with the epidemic. The local government sign-on and voting solicitation process will proceed, contingent upon the approval of the bankruptcy court.
