The OxyContin settlement explained: Where the Sackler family's $7 billion will go

"Members of the Sackler family who own OxyContin maker Purdue Pharma must pay billions of dollars to settle a flood of lawsuits over the harms of opioids, under a new deal that was formally approved by a federal bankruptcy judge on Tuesday. The Sackler family must contribute up to $7 billion over 15 years. Most of the money is to go to government entities to fight the opioid crisis, which has been linked to 900,000 deaths in the U.S. since 1999."

"The new agreement replaces one the U.S. Supreme Court rejected last year, finding it would have improperly protected members of the family against future lawsuits. Under the current agreement, entities that do not opt into the payments can still sue members of the family. The deal, which the judge said he would accept last week, is among the largest in a series of opioid settlements brought by state and local governments against drugmakers, wholesalers, and pharmacies that totaled about $50 billion."

The Sackler family must contribute up to $7 billion over 15 years to resolve numerous lawsuits tied to opioids produced by Purdue Pharma. Most of the settlement funds will flow to government entities for opioid-response efforts, with payments also directed to thousands of victims and survivors and some distributions beginning next year. The agreement replaces a prior plan rejected by the U.S. Supreme Court and preserves the ability of nonparticipating entities to sue family members. A federal bankruptcy judge characterized the settlement as fair, equitable, supported by most claimants, and part of roughly $50 billion in related resolutions.

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