Judge Expected To Sentence Purdue Pharma To Forfeit $225 Million In Opioid Crisis Settlement

A judge is expected to sentence Purdue Pharma to forfeit $225 million to the Justice Department on Tuesday, a step that Associated Press says clears the way for the company to finalize a settlement of thousands of lawsuits tied to its role in the opioid crisis.

“A criminal sentence for OxyContin maker Purdue Pharma clears the way for completing its settlement A criminal sentence for OxyContin maker Purdue Pharma clears the way for completing its settlement A judge is expected to sentence OxyContin maker Purdue Pharma to forfeit $225 million to the Justice Department on Tuesday, clearing the way for the company to finalize a settlement of thousands of lawsuits it faces over its role in the opioid crisis”

Associated Press

The penalty was agreed to in a 2020 pact to resolve federal civil and criminal probes it was facing, and the AP reports that if the judge signs off, other penalties will not be collected in return for Purdue settling the other lawsuits.

Associated Press

The settlement was approved by another judge last year and could take effect May 1, according to the Associated Press account.

The broader settlement requires members of the Sackler family who own the company to pay up to $7 billion to state, local and Native American tribal governments, some individual victims and others, the AP says.

The AP also reports that Purdue pleaded guilty to three federal criminal charges in November 2020, and that the Stamford, Connecticut-based company admitted it did not have an effective program to keep its prescription painkillers from being diverted to the black market.

The Associated Press further says Purdue admitted it paid doctors through a speakers program to prescribe the drugs and paid an electronic medical records company to send doctors information on patients that encouraged more opioid prescriptions.

The Associated Press adds that Purdue is expected to pay $225 million, while the government agreed in the plea deal not to collect $5.3 billion in criminal forfeitures and fines and $2.8 billion in civil liabilities.

The Associated Press describes the criminal sentence as the latest milestone in a case that it says was “years in the making,” with Purdue pleading guilty in November 2020 to three federal criminal charges.

The AP says Purdue admitted that it did not have an effective program to keep its powerful prescription painkillers from being diverted to the black market, even though it told the U.S. Drug Enforcement Administration that it did.

El Mundo

The AP also reports that Purdue admitted it paid doctors through a speakers program to prescribe the drugs and paid an electronic medical records company to send doctors information on patients that encouraged more opioid prescriptions.

The Associated Press account ties the settlement’s structure to a 2020 pact and says that if the judge signs off, “other penalties will not be collected in return for Purdue settling the other lawsuits.”

It also says the settlement was approved by another judge last year and could take effect May 1.

International Business Times, citing the Associated Press, similarly frames the expected sentence as triggering “a $225 million payment” and settlements involving thousands of lawsuits that could potentially reach “as high $7 billion over the next 15 years.”

International Business Times adds additional detail about the plea agreement, stating that Purdue admitted that from May 2007 through at least March 2017 it misled the Drug Enforcement Administration to believe the company had an effective program to prevent diversion to the black market.

The settlement’s financial terms and legal protections for the Sackler family are central to how the Associated Press and other outlets describe what the expected sentence will unlock.

“The pharmaceutical Purdue Pharma and the members of the billionaire Sackler family, owners of the company, have agreed to pay $7”

EL PAÍS

The Associated Press says the broader settlement calls for members of the Sackler family who own the company to contribute up to $7 billion over 15 years, with most of the money going to government entities to use to fight the opioid crisis.

It also says the settlement is among the largest in a series of settlements and is “the only major one that includes payments for some individual victims or their survivors.”

Under the Purdue deal described by the AP, members of the Sackler family would be shielded from lawsuits over opioids from those who agree to the payments.

The Associated Press also reports that Purdue itself would cease to exist and be replaced by a new company, Knoa Pharma, which would operate for the public benefit and have a board appointed by the states.

El País, however, describes a different figure for the nationwide settlement, saying Purdue Pharma and the members of the Sackler family agreed to pay $7.4 billion to settle thousands of lawsuits.

El Mundo similarly reports a $7.4 billion agreement in principle announced Thursday by Letitia James, saying the Sackler family will pay $6.5 billion over 15 years and Purdue $900 million.

While the expected sentence and settlement framework move forward, the Associated Press describes ongoing pressure from victims who argue the deal does not deliver full accountability.

The AP says more than 54,000 people with personal injury claims against Purdue voted to accept the settlement, and 218 voted against it.

International Business Times

It adds that “Still, some victims and their family members have been pushing back for years,” asserting that the settlement and the guilty plea stop short of justice for victims of a crisis linked to “900,000 deaths in the U.S. since 1999.”

The Associated Press also describes Susan Ousterman’s efforts, saying her son, Tyler Cordiero, died at age 24 in 2020 after overdosing on a mixture that included fentanyl after years of using heroin and other opioids.

The AP says Ousterman organized others who lost loved ones to deliver victim impact statements to the court ahead of the sentencing.

El País, in turn, says those who do not wish to join the agreement are free to sue the Sacklers, who have said they will vigorously defend themselves in court.

El País also states that the Sackler family members have denied wrongdoing, expressing regret for OxyContin’s role in the opioid crisis and removing their surname from philanthropic initiatives such as museum galleries and university centers.

The expected sentencing is positioned by the Associated Press as a procedural gateway to completing Purdue’s settlement, but other outlets describe parallel legal developments and the roles of state attorneys general.

“A judge is expected to sentence OxyContin maker Purdue Pharma to forfeit $225 million to the Justice Department on Tuesday, clearing the way for the company to finalize a settlement of thousands of lawsuits it faces over its role in the opioid crisis”

STAT

The Associated Press says the penalty was agreed to in a 2020 pact and that if the judge signs off, other penalties will not be collected in return for Purdue settling the other lawsuits, with the settlement approved by another judge last year and potentially taking effect May 1.

STAT

It also says the settlement requires Sackler family members to pay up to $7 billion over 15 years and that Purdue would cease to exist and be replaced by Knoa Pharma, with a board appointed by the states.

El País reports that the framework agreement reached this Thursday does not grant the family automatic protection from future litigation, quoting New York Attorney General Letitia James in a statement.

El Mundo similarly says the agreement must receive court approval and that it ends the family’s control over Purdue, with a board of directors elected by the states participating in consultation with the other creditors determining the future of the company.

The Associated Press adds that Purdue’s sentencing doesn’t include the company’s owners, and it says no members of the Sackler family were charged.

It also reports that family members received $10.7 billion in payments from Purdue from 2008 to 2018, with nearly half used to pay taxes on behalf of Purdue, and that they have not been paid by the company since 2018.