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Purdue Pharma and the Sackler family that controlled it have agreed to pay $7.4 billion to several U.S. states to settle liability claims in the opioid maker’s bankruptcy.
The preliminary agreement with more than a dozen states comes after months of mediation between the family and Purdue creditors. The pharmaceutical maker initially filed for bankruptcy in 2019 in a New York federal court to handle hundreds of lawsuits over its role in the pharmaceutical industry. opioid crisis.
A previous $6 billion deal between the family and creditors was overturned by the U.S. Supreme Court last summer. The agreement was intended to protect the family members from future lawsuits, which the court said was not allowed without the family members declaring bankruptcy themselves.
The funds will be used over the next 15 years to fund opioid addiction treatment and recovery programs, according to a release from the Texas Attorney General’s Office.
This is a developing story.