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Purdue Pharma, the maker of OxyContin, has been ordered to pay a $225 million fine, marking the end of a criminal case against the company. A federal judge in Newark, New Jersey, delivered the sentence on Tuesday, allowing Purdue to finalize a settlement that resolves thousands of lawsuits related to its role in the opioid crisis. The company, which pleaded guilty in 2020 to charges concerning the marketing and distribution of OxyContin, will cease operations on Friday.
The settlement, part of a broader $7.4 billion plan, aims to support communities, governments, and individuals impacted by the opioid epidemic. The Sackler family, owners of Purdue, will contribute up to $7 billion over 15 years to state, local, and Native American tribal governments, as well as some individual victims. According to ABC30, this settlement is among the largest in recent years, with the funds intended to address the overdose crisis.
Purdue's assets will be transferred to Knoa Pharma, a new company focused on developing treatments for the opioid crisis. The transition is part of a complex reorganization process, with Purdue having paid over $1 billion to law firms and professionals involved in the case. The Wall Street Journal reports that the settlement protects the Sackler family from future lawsuits related to opioids, although they have not faced criminal charges.
Despite the settlement, some victims and their families remain dissatisfied, arguing that justice has not been fully served. Susan Ousterman, whose son died from an opioid overdose, organized victim impact statements to urge the judge to reject the plea deal and pursue charges against individuals, including Sackler family members. Critics argue that funds should be more effectively used to combat the opioid crisis.
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