Purdue Pharma and Sackler Family Reach $7.4 Billion Settlement Over Opioid Crisis

US
Published:

Purdue Pharma, the company behind the controversial painkiller OxyContin, along with members of the Sackler family, has agreed to a new settlement totaling $7.4 billion to resolve numerous lawsuits related to the opioid crisis. New York Attorney General Letitia James announced this development on Thursday, marking a significant increase from a previously rejected settlement.

This settlement, which needs court approval, addresses claims from state and local governments as well as thousands of victims affected by the opioid epidemic. The Sackler family will contribute up to $7.4 billion over the next 15 years while relinquishing ownership of Purdue, which will transition to a new entity governed by appointees from the suing parties.

The settlement also earmarks funds for victims of the opioid crisis and their families. The agreed amount surpasses the $6 billion previously proposed, which was blocked by the U.S. Supreme Court due to its protective clauses for the Sackler family against civil lawsuits. The revised agreement protects family members only from lawsuits initiated by parties accepting the settlement.

This new deal could potentially conclude a lengthy legal struggle stemming from OxyContin's association with a significant rise in opioid addiction and related fatalities since its introduction in 1996. The opioid crisis has led to hundreds of thousands of deaths in the U.S., significantly exacerbated since 2020 by illicit fentanyl.

The Sacklers have faced substantial public criticism and their name has been removed from various cultural institutions as a result of the opioid crisis. Despite their immense wealth, much of which is held in offshore accounts, they continue to deny any wrongdoing related to the crisis.

Weekly Newsletter

News summary by melangenews

Loading...

More from United States

Trump Threatens BRICS Nations with 100% Tariff Over US Dollar Replacement

In a bold statement on January 30, 2025, U.S. President Donald Trump issued a warning to the BRICS nations—Brazil, Russia, India, China, and South Africa—threatening to impose a 100% tariff if they pursue the creation of a new currency or support alternatives to the US dollar. Trump emphasized the need for commitments from these countries to refrain from actions that could undermine the dollar's dominance in international trade. The remarks came amidst ongoing discussions about the BRICS alliance potentially moving away from reliance on the US dollar. According to Trump, the notion that these countries could attempt to replace the dollar without consequence is no longer viable. He posted on his Truth Social platform, asserting that the U.S. government would require a clear commitment from BRICS members against such initiatives. This escalation of rhetoric highlights the ongoing tensions surrounding global currency standards and the U.S. position in international economic affairs.
US

Walgreens Stops Dividend Payments for First Time in 92 Years Amid Financial Challenges

Walgreens Boots Alliance has announced the suspension of its quarterly dividend payment to shareholders, marking the first time in 92 years that the company has opted not to distribute cash dividends. The decision, reported on January 30, 2025, comes as the Deerfield-based retail pharmacy faces ongoing financial difficulties. In an effort to streamline operations, Walgreens plans to close approximately 1,200 stores over the next three years, including locations in Chicago. The company has been implementing cost-cutting measures, which include recent layoffs in Illinois and other regions. According to Walgreens, the suspension of dividends is designed to assess and refine its capital allocation policy as part of a broader turnaround strategy. A company release emphasized that cash needs associated with litigation and debt refinancing critically influenced the decision. Walgreens reported a substantial net loss of $265 million in the first quarter of this year, in stark contrast to a loss of $67 million in the same quarter the previous year.
US

Costco to Raise Hourly Wages for US Workers to Over $30

Costco Wholesale has announced plans to increase hourly pay for most of its U.S. store workers to over $30, according to a memo distributed to employees this week. The wage hike will implement a $1 increase annually for the next three years, beginning with a rise to $30.20 in the first year. Additionally, workers at the bottom of the pay scale will see their wages increase by 50 cents to $20. This decision comes amid contract negotiations between Costco and the Teamsters union, which represents over 18,000 employees. The union recently revealed that 85% of its members voted in favor of a nationwide strike as talks approach a January 31 deadline. Costco emphasized in the memo, signed by CEO Ron Vachris, that the changes would ensure that their hourly wages and benefits continue to surpass those offered by competitors in the retail industry. As labor relations become increasingly contentious across various sectors, this move may help Costco maintain its workforce and improve employee morale.
US
All United States News ->