Purdue Pharma, the maker of OxyContin, is set to dissolve and be replaced by a new company focused on public good as part of an $8.3 billion settlement resolving thousands of lawsuits related to the opioid crisis. According to multiple reports, this decision comes after a federal judge approved the criminal sentence for Purdue Pharma.
Key Takeaways
Purdue Pharma will dissolve and be replaced by a new company focused on public good as part of an $8.3 billion settlement resolving thousands of lawsuits related to the opioid crisis.
- Purdue Pharma set to dissolve after judge approves criminal sentence
- Settlement includes $7 billion contribution from Sackler family over 15 years
- Payments to individual victims expected to range from $8,000 to $16,000
- Judge sympathizes with victims but approves the negotiated settlement
- Purdue Pharma admitted to deceiving regulators and paying kickbacks to doctors
The settlement includes a $7 billion contribution from the Sackler family over 15 years, with most of the money going to government entities to fight the opioid crisis. As reported by CBS News, payments to individual victims are expected to range from about $8,000 to about $16,000.
The judge heard impact statements from people who lost loved ones or struggled with addiction themselves and requested she reject the negotiated sentence. According to HuffPost, Judge Madeline Cox Arleo sympathized with the victims but ultimately approved the settlement, stating that it was a purposeful, intentional, and sophisticated crime scheme.
The settlement is among the largest in a series of settlements by drugmakers, wholesalers, and pharmacies in recent years. Under the deal, members of the Sackler family will be shielded from lawsuits over opioids from those who agree to the payments. As reported by Reuters, Purdue Pharma admitted to deceiving regulators and paying kickbacks to doctors to boost opioid sales.
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