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Gov. Andrew Cuomo announced a $4.5 billion settlement with the pharmaceutical company that will put them out of business after falsely marketing its products to get Americans hooked on opioids.
The owners of Purdue Pharma, the Sackler family, will pay out a total of $4.325 billion over the next nine years, with New York State receiving approximately $200 million.
Cuomo said the funding will be used to “fund prevention, treatment and recovery programs in communities across the country, and thousands of individual victims will also receive compensation as part of Purdue's bankruptcy process.”
“The opioid epidemic was created by unscrupulous opioid companies who put personal profit over the health and safety of our state, and countless New Yorkers have suffered as a result," Cuomo said in a statement. "The families and loved ones who have been impacted by this crisis deserve justice, and this agreement with Purdue is just the first step in affording some measure of accountability for the human and financial toll they have inflicted.
As part of the settlement, the Sackler family was also forced to relinquish control of family foundations to trustees of a National Opioid Abatement Trust dedicated to abating the opioid crisis.
“The opioid settlement with Purdue Pharma and the Sackler family, achieved by NYS Attorney General James and other states AGs, is monumental and serves as long-awaited justice for communities and families devastated by the overdose epidemic,” New York Sen. Pete Harckham, the chair of the Senate Committee on Alcoholism and Substance Abuse added.
The settlement between New York State and Purdue Pharma will shut down Purdue Pharma and prevents the Sackler family, from manufacturing opioids in the future, officials noted.
“For nearly two years, since Purdue Pharma declared bankruptcy, the company and the Sackler family have used every delay tactic possible and misused the courts — all in an effort to shield their misconduct,” New York Attorney General Letitia James said.
“While this deal is not perfect, we are delivering $4.5 billion into communities ravaged by opioids on an accelerated timetable and it gets one of the nation’s most harmful drug dealers out of the opioid business, once and for all.”
The agreement also prohibits the Sackler family from requesting or permitting any new naming rights in connection with charitable or similar donations or organizations for the next nine years.
“We’ll be able to more quickly invest these funds in prevention, education, and treatment programs, and put an end to the delays and legal maneuvering that could possibly continue for years and across multiple continents,” James added.
“While no amount of money will ever compensate for the thousands who lost their lives or became addicted to opioids across our state or provide solace to the countless families torn apart by this crisis, these funds will be used to prevent any future devastation.”
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