Purdue inks multibillion-dollar opioid deal with thousands of local governments, more than 20 states: reports

OxyContin
Purdue has inked a "global" opioid settlement worth billions of dollars, according to reports. (PureRadiancePhoto/Shutterstock)

Purdue Pharma has entered the first major opioid settlement. The company, whose OxyContin played a role in the opioid epidemic, plans to file for bankruptcy imminently and restructure under an agreement with 23 states and nearly 2,300 cities, counties and tribes, according to The New York Times.  

Under the deal, Purdue’s founding family—the Sacklers—will pay plaintiffs $3 billion over seven years. Some state attorneys general had wanted them to pay $4.5 billion upfront, but the family refused, the newspaper reports.

Purdue will restructure under the agreement and keep selling OxyContin, with proceeds going back to plaintiffs to help remedy the nationwide opioid and addiction epidemic. The Washington Post pegged the total deal value at between $10 billion and $12 billion.  

Webinar This Week

OTC Innovation to Avoid Stagnation: Survey Insights, Expert Advice, and Latest Technologies to Boost Your Product’s Performance

Join us for a complimentary webinar on November 13 at 11am ET / 8am PT. Listen to industry experts as they analyze the critical role of innovation in OTC products, and strategies for achieving it.

The company and Sackler family won’t admit wrongdoing as part of the deal, according to reports. Even after the Sacklers pay the $3 billion, they'll get to keep billions in wealth. In 2016, Forbes estimated their net worth to be $13 billion. 

RELATED: Purdue offers up to $12B in opioid talks, reports say. Will that be enough? 

The settlement follows Purdue’s $270 million deal to resolve a lawsuit brought by Oklahoma. Wednesday’s agreement is the first “global” opioid settlement, according to the NYT, but it isn’t clear whether it’ll absolve the company or family members from all existing and future claims, such as those from states that didn’t sign on. 

Connecticut, New York and Massachusetts are among the states that haven’t joined the agreement, the NYT reports. Connecticut’s attorney general, William Tong, told the newspaper the state’s position “remains firm and unchanged and nothing for us has changed today.” 

“I cannot predict whether Purdue will seek bankruptcy, but all I can say is we are ready to aggressively pursue this case wherever it goes—whether it is in the Connecticut courts or through bankruptcy,” the attorney general added, as quoted by the NYT. 

Details of the deal emerged after NBC News and Reuters reported late last month the company offered up to $12 billion through the same restructuring and bankruptcy approach. According to those reports, the family offered $3 billion to plaintiffs.   

RELATED: Purdue talks may have stalled with state attorneys general, but cities and counties are still at it: AP 

Some state attorneys general weren’t pleased with the terms, sources told the The Wall Street Journal. Talks with certain attorneys general reportedly reached an impasse over the weekend as lawyers representing local plaintiffs pressed on.  

Purdue and other drugmakers face thousands of lawsuits, grouped up in Cleveland, alleging that drugmakers oversold opioid benefits and downplayed the risks. More than 40 states have sued as well. The first trial is set for October, and some drugmakers have inked small settlements with two Ohio counties in a bid to sidestep the trial. 

Suggested Articles

Mylan and Pfizer's Upjohn have a name for their pending merger: Viatris. Heard that before? So has Mylan, which owns a subsidiary with the same name.

Intercept presented a data analysis that found treatment with Ocaliva led to "early and consistent improvements" in a range of noninvasive tests.

Days before Amarin faces a pivotal FDA vote on its Vascepa expansion, advisors are set to scrutinize the placebo used in its pivotal outcomes trial.