BOSTON — Massachusetts and other states have reached a tentative $7.4 billion settlement with the Sackler family and Purdue Pharma over their alleged role in fueling the nation’s opioid crisis.
The agreement, announced Thursday by Massachusetts Attorney General Andrea Campbell, will require members of the Sackler family who own Purdue to contribute up to $7.4 billion over 15 years and give up ownership of the company and its assets. A portion of the funds will go to victims of the opioid crisis or their survivors.
“Purdue Pharma and the Sacklers’ greed led to the devastation of countless families impacted by our opioid crisis,” Campbell said in a prepared statement. “We can’t bring back loved ones lost, but I’m proud to announce my office has helped secure a $7.4 billion settlement to hold those who fueled this crisis accountable.”
The settlement, which must be approved by a federal judge, is more than $1 billion higher than a previous deal that was rejected last year by the U.S. Supreme Court.
The Sacklers will pay up to $6.5 billion and Purdue will pay $900 million for a total of $7.4 billion. A sizable chunk of the funds, or $1.5 billion, will be paid in the first year under the terms of the settlement.
Massachusetts stands to get $108 million from the tentative settlement, according to the AG’s office, which is more than the previous deal with the Sackler family that would have paid the state about $90 million. The money goes into a state fund that’s earmarked for substance abuse treatment and prevention.
The settlement will also require the Sacklers to release more than 20 years of documents related to the company’s sales, marketing and distribution of OxyContin.
A multi-state lawsuit filed in 2018 by then Attorney General Maura Healey against Purdue Pharma’s owners, the Sackler family, alleged that they reaped billions of dollars as their company misled prescribers and patients in order to boost sales of addictive medications.
Purdue sought bankruptcy protection in 2019 as it faced thousands of other lawsuits over the opioid crisis.
Two years later, the Sackler family agreed to pay $6 billion to states and families of overdose victims as part of an agreement to dissolve the company. In exchange, the Sacklers would be shielded from any future civil liability claims.
But last year the U.S. Supreme Court rejected that settlement with justices criticizing a provision that shielded the Sackler family from future lawsuits.
Massachusetts is still grappling with a deadly wave of addiction that claimed thousands of lives from overdoses, despite a declining number of deaths. Many argue that the crisis has its roots in the oversubscribing of opioid medicines.
There were 2,125 confirmed or suspected opioid-related deaths in 2023, which is 232 fewer fatal overdoses than the same period in 2022. A majority of the overdose deaths were linked to the synthetic opioid fentanyl, according to the state Department of Public Health.
Nationally, there were 107,543 overdose deaths reported in the U.S. in 2023, a 3% decrease from the estimated 111,029 in 2022, according to recently released U.S. Centers for Disease Control and Prevention data.
“This settlement is a win for families who have been fighting for justice, accountability, and transparency for years,” said Joanne Peterson, founder and executive director of Learn to Cope, a nonprofit that offers resources to families of people struggling with addiction.
“With the release of Purdue’s documents, the public will be able to see the atrocity of the Sacklers’ actions,” she continued. “Hopefully this will allow us to make sure that nothing like what took place at Purdue ever happens again.”
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.