OxyContin maker Purdue Pharma set to dissolve after judge approves its criminal sentence
Purdue Pharma is set to dissolve after a federal judge approved its criminal sentence, clearing the way for a settlement to take effect. The company admitted to misleading regulators and paying doctors to boost opioid prescriptions, contributing to the U.S. overdose epidemic. While the settlement includes up to $7 billion from the Sackler family and the creation of a new public health-focused company, no individuals face criminal charges. Victims expressed frustration that the resolution falls short of justice, with many unlikely to receive compensation.
- ▪A federal judge approved Purdue Pharma's criminal sentence, allowing a settlement to proceed that will dissolve the company and replace it with Knoa Pharma, aimed at addressing the opioid crisis.
- ▪Purdue admitted to lacking an effective program to prevent opioid diversion and to paying doctors and a medical records company to encourage OxyContin prescriptions.
- ▪The Sackler family will contribute up to $7 billion over 15 years and receive legal immunity from opioid-related lawsuits, despite receiving $10.7 billion from the company between 2008 and 2018.
- ▪The settlement includes $225 million in federal penalties and provides individual victim payments of $8,000 to $16,000, though many may be excluded due to lack of documentation.
- ▪Over 900,000 opioid-related deaths have occurred in the U.S. since 1999, and the judge criticized both Purdue and federal authorities for their roles in the crisis.
Opening excerpt (first ~120 words) tap to expand
NEWARK, N.J. — OxyContin maker Purdue Pharma is set to be dissolved and replaced by a company focused on the public good by the week’s end, as a massive legal settlement resolving thousands of lawsuits takes effect. A federal judge on Tuesday delivered a criminal sentence to the company to resolve a U.S. Department of Justice probe - a last necessary step to clear the way for the settlement. U.S. District Judge Madeline Cox Arleo made her decision after listening to hours of impact statements from people who lost loved ones or struggled with addiction themselves and requested she reject the negotiated sentence. While she didn’t go that far, she said she sympathized with people who bore the brunt of an epidemic linked to more than 900,000 deaths in the U.S. since 1999.
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