Purdue Pharma Negotiating Huge Opioid Lawsuit Settlement
- Home / Defective Drug /
- Purdue Pharma Negotiating Huge Opioid Lawsuit Settlement
September 6, 2019
The Sackler Family, which owns OxyContin maker Purdue Pharma, is negotiating a settlement of thousands of opioid-abuse lawsuits that may require the family to pay $3 billion of its own money.
However, under the terms of the proposed settlement, the family would not simply be paying billions of dollars to the plaintiffs. Most of the money would come from restructuring Purdue Pharma through Chapter 11 bankruptcy. This would turn the company into a public beneficiary trust, allowing any profits from drug sales to be paid to the plaintiffs.
Under the proposed settlement, the family and company would contribute somewhere between $10 and $12 billion, including $3 billion from the family. The Sacklers would also sell their company Mundipharma and contribute $1.5 billion from the sale to the settlement.
The company would also give its addiction-treatment drugs to the public for free. These drugs include a nasal spray to help reverse overdoses and pills to help control cravings for opioids. Ironically, the company would pay for these drugs through the continued sale of OxyContin.
The value of these drug donations and profits from the trust are estimated at about $7 or $8 billion.
Settlement talks have been going on for months, and if a settlement gets done, it would be the first time a manufacturer, distributor or retailer of prescription opioids has settled all the lawsuits against it for its role in the opioid crisis.
Purdue Pharma released a statement in response to reports about settlement talks. It says the company does not see the benefit to years of litigation and appeals because the people affected by the opioid crisis need help now. The company believes a resolution of all the lawsuits is the best way forward.
Criticism of the Proposed Settlement
Even though a settlement would help those affected by opioid addiction, the Sackler family may end up keeping much of their wealth.
Some of the plaintiffs oppose the settlement because they do not trust the valuations given by the Sackler family and Purdue Pharma.
However, if the settlement fails and the Sacklers put the company in Chapter 11, the plaintiffs in these lawsuits may have split up as little as $1.2 billion.
Only 10 states have been represented at negotiations, and there is a total of 38 states that have filed lawsuits against Purdue. All these states would need to sign on to the settlement for it to take effect.
Purdue Pharma’s Troubled History with Opioids
Purdue introduced OxyContin to the prescription painkiller market back in 1996. The company aggressively marketed the drug, and this is widely viewed as a main reason why the opioid epidemic started.
In 2007, three of the top executives at the company pled guilty to misleading regulators, doctors and patients about the risk of addiction from OxyContin. Even though the company paid a $600 million fine, Purdue continued to aggressively promote the drug, oversell its benefits and downplay the risks.
If a settlement is reached, the Sackler family will no longer be involved in the drug companies that were founded by the Sackler brothers back in the 1950s.
Call Phillips Law Group for a Free Consultation
Have you or a loved one been affected by the opioid epidemic?
Call our experienced defective drug lawyers for a free legal consultation today. We can discuss your situation and whether you may be able to file an opioid lawsuit. If you have a case, we can guide you through the legal process, pursuing fair compensation for damages.
The consultation comes with no obligation to take legal action and there are no attorney’s fees unless you receive compensation.
Fill out aFree Case Evaluation formor call us at 1-800-706-3000 .
Free Case Evaluation
By submitting your contact information, you agree that we may contact you by telephone (including text) and email in accordance with our Terms and Privacy Policy

Your message has been sent
Thank you for your message, we will get back to you soon.
Categories:
- Auto Accidents
- Business Litigation
- Class Action Lawsuits
- Defective Drug
- Defective Products
- Employee Rights
- Employment Law
- Firm News
- Local
- Medical Malpractice
- Motorcycle Accidents
- Nursing Home Abuse
- Pedestrian Accident
- Personal Injury
- Premises Liability
- Product Liability
- Slip and Fall
- Social Security Disability
- Workers' Compensation
- Wrongful Death
-
My paralegal , Caroline , was on top of her game - very responsive and always answered any questions I had and in a timely manner . My attorney Rob ,was the best attorney I ever had . He explained everything in great detail and had a great sense or humor . He really knows how to bring light To tough , unfortunate situations - I would absolutely recommend them at anyone -
-
Phillips Law Group provides a collaborative environment in which both attorneys and staff work together to achieve the best outcome for clients. As an attorney here at PLG, I’m lucky to be surrounded by seasoned attorneys and knowledgeable staff that share my enthusiasm for helping accident victims. The team here at PLG treats clients with respect and empathy while fighting hard to get the results they deserve.
-
Jasmine helped me so so much I want to thank her ! And also Aaron , i was always scared after an accident , knowing I would have to deal with lawyers but not here . Luckily I’ve only been in 3 accidents but this time it was fast and easy . And i received all the treatments I needed to help me recover ! Thank you Jasmine and Aaron!
-
Although my accident was fortunately not a major one, The Phillips Law Group AZ treated it as such. Their staff, specifically Mr Juan Roque was very professional, courteous and most importantly very informative. Mr Roque's attentive service was phenomenal and I highly recommend this firm!
-
Definitely recommend! Awesome
-
Phillips Law Group is a company that has taught me so many things. Here your work, your dedication, effort and discipline are valued, in addition to the fact that, as a woman, as an immigrant and as a human being, I have been given value and empowerment. We are a successful law firm because all workers feel part of a great family. I am very proud and honored to work at Phillips Law Group.
-
Liz was great
-
I would like to send special thanks to Phillips Law Group for giving me the opportunity to be a part of the Best Law Firm here in the Valley. During these troubling times with the epidemic, Phillips Law Group has masterfully created this family-like environment while still maintaining a professional and business-like approach for all their clients. Thru impeccable leadership that is unmatched by other law firms to the Multi-diverse employment opportunities that many employees advance within the firm; Phillips Law Group has not only distanced themselves from all other competition in the Personal Injury field but also has innovatively changed the narrative of being a great law institution. From providing Employee Appreciation Day to celebrating all major Holiday including great competitive contests; Phillips Law Group has the total participation of all employees to help contribute to the continued success of this firm. So in closing I would like to thank Senior Administration (Jeffery Phillips, Eva Chiaramonte, and Tim Tonkin) along with all of my colleagues and many friends for help making Phillips Law Group a unique and wonderful place to call my place of employment for 6+ years.
-
Thank you Phillips Law Group for all the support and back to school assistance we appreciate it.
-
Working at Phillips Law Group has been a blessing from the beginning for me and I am extremely thankful to work for a firm that values their employees so much. Here I believe we are a huge family of hard working people that can bring a sense of comfort to our client’s lives in times of hardships, stress and chaos. From intake to Settlement we strive to provide the best customer care to all of our wonderful clients. With a 4.8 rating and over 1100+ star reviews on Google no surprise our firm is extremely well known for the quality of work we do!! #teamPLG!!