The settlement of $7.4 billion has been reached with Purdue Pharma for the damage that OxyContin has caused in the opioid crisis across the United States. The cash will be used to compensate several groups of those who suffered because of the epidemic.
Who will receive compensation from the Purdue Pharma settlement
The settlement funds are designated for several key groups:
- State and Local Governments: A significant portion of the funds will be allocated to state and local governments. These resources are intended to support opioid addiction treatment, prevention, and recovery programs within their communities.
Â- Individuals Affected by the Opioid Crisis: Individuals who have suffered due to opioid addiction linked to OxyContin may be eligible for direct compensation. This includes those who became addicted after being prescribed OxyContin and families who have lost loved ones to opioid overdoses.
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- Individuals Affected by the Opioid Crisis: Individuals who have suffered due to opioid addiction linked to OxyContin may be eligible for direct compensation. This includes those who became addicted after being prescribed OxyContin and families who have lost loved ones to opioid overdoses.
- Tribal Governments: Native American tribal governments, which have been disproportionately affected by the opioid epidemic, are also set to receive funds to combat addiction and support recovery initiatives within their communities.
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How will the settlement funds be distributed
The $7.4 billion is apportioned as shown below and will be paid over a period of 15 years.
- Initial payments: The Sackler family is to make the initial payment of $1.5 billion, followed by an additional $500 million after one year, another $500 million after two years, and $400 million after three years.
- Purdue Pharma Contribution: Purdue Pharma will contribute nearly $900 million upon court approval of the settlement.
- Funding Distribution: The lion’s share of the settlement money will be allocated for opioid addiction treatment, prevention, and recovery programs. A portion will be distributed directly to the individuals who have been affected by the crisis, while the remainder will go toward state, local, and tribal government initiatives against the epidemic.
What does this mean for the Sackler family’s involvement in Purdue Pharma
As part of the settlement:
- Relinquishing Control: The Sackler family will relinquish ownership of Purdue Pharma. The company will be restructured with a board appointed by the states involved in the settlement.
 - Prohibition from Opioid Sales: The Sacklers will be barred from selling opioids in the United States.
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How does this settlement compare to previous agreements
This $7.4 billion settlement represents more than a $1 billion increase over a prior deal that was rejected by the U.S. Supreme Court last year. The earlier settlement had been criticized for offering the Sackler family immunity from future civil lawsuits, a provision not included in the current agreement.
The opioid settlement represented one essential step further in damages to be taken for proper restoration in service, resources, and support desperately needed in continuing to struggle with opioid addiction throughout the United States.
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