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BumRushDaShow

(146,207 posts)
Thu Jan 23, 2025, 02:30 PM Thursday

Purdue Pharma and Sacklers reach new $7.4bn settlement over opioids crisis

Source: The Guardian

Thu 23 Jan 2025 13.34 EST
First published on Thu 23 Jan 2025 12.15 EST


The Sackler family, which owns the OxyContin maker Purdue Pharma, has agreed to pay up to $7.4bn in a settlement to lawsuits arising from the opioid epidemic. The sprawling deal, agreed between Purdue Pharma, Sackler family members involved in its ownership, thousands of victims of the opioid crisis, and state and local governments, is among the largest settlements of its kind.

Under the terms of the deal, which still needs to be approved in court, members of the Sackler family would contribute up to $7.4bn over 15 years. They would also relinquish control of Purdue, which developed and patented the highly addictive OxyContin in 1996, and the company would become a new entity with its board appointed by states and others who sued the company.

The money will be spread among victims of the opioid crisis or their survivors and state and local governments, with the money to be used to attempt to stem the decades-long epidemic. Purdue sought bankruptcy protection in 2019 as it faced thousands of lawsuits over the opioid crisis. Among the claims are that the company targeted doctors with a message that the addiction risk to the powerful painkillers was low.

“This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down. Today, we are forcing Purdue Pharma and the Sackler family to pay $7.4 billion for their role in igniting one of the most devastating public health crises in American history,” William Tong, the Connecticut attorney general, said in a statement.

Read more: https://www.theguardian.com/us-news/2025/jan/23/purdue-pharma-sackler-lawsuit

7 replies = new reply since forum marked as read
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Purdue Pharma and Sacklers reach new $7.4bn settlement over opioids crisis (Original Post) BumRushDaShow Thursday OP
I appreciate the action but BOSSHOG Thursday #1
Why? Beowulf42 Thursday #2
No one goes to jail BigMin28 Thursday #3
Is any one going to jail ? republianmushroom Thursday #4
Question about the "settlement" Bob_in_VA Thursday #5
My back of the envelope math Miguelito Loveless Friday #6
Always beware the phrase "up to" OrwellwasRight Friday #7

BOSSHOG

(40,782 posts)
1. I appreciate the action but
Thu Jan 23, 2025, 02:37 PM
Thursday

If anyone deserves to be behind bars it is the Sacklers.

Eight years ago when I was young and Naive I tore up my left arm. I spent the night in the hospital. The next day when I was released, the Doctor gave me a prescription for 100 OxyContin. The doctor told me I would need one before I went to bed. I had no pain, but the Doctor said so I did. That’s the only one I took. I never had any related pain. Discomfort but no pain. The rest went to the county medical lockbox. Not putting them in jail is cruel and unusual. For their victims.

Beowulf42

(239 posts)
2. Why?
Thu Jan 23, 2025, 02:56 PM
Thursday

These companies represent such a grave threat to the health of the people of America. There is no reason that they should be allowed to continue to supply drugs to the nation.

BigMin28

(1,561 posts)
3. No one goes to jail
Thu Jan 23, 2025, 03:16 PM
Thursday

The family gets to keep their ill gotten gains. The victims and survivors will end up with comparatively small settlements to the government and attorneys. Two tiered justice system shows itself again.

republianmushroom

(18,608 posts)
4. Is any one going to jail ?
Thu Jan 23, 2025, 03:42 PM
Thursday

"Justice for all", my ass. A dude on the street gets caught sell a ounce, many years is prison.

members of the Sackler family would contribute up to $7.4bn over 15 years. But no one does any time. Strange concept of Justice.

Bob_in_VA

(101 posts)
5. Question about the "settlement"
Thu Jan 23, 2025, 07:25 PM
Thursday

So. The family will provide $7.4 billion to settle all of the claims. Over a period of 15 years. Curious. So, how much money, invested over 15 years would yield $7.4 Billion where the annual interest is not reinvested? My "back of the envelope" says $5 billion at 10%. So the family puts $5 billion into an investment returning 10%, leaves it there for 15 years to pay off the award, then put the $5 billion back into their collective pocket. Under the circumstances, not a lot of pain to the family. Certainly, nowhere near the pain if the court ordered the family to pay up NOW. "Oh, you have to sell off assets to meet the requirement? And how many of those assets were acquired using the profits from your drug pushing? Hmmm?" "Too bad, so sad."

Next question. Over the time when Purdue was pushing this drug (does that make the Sackler family drug pushers?), how much in profits did the Sackler family receive? I suspect more than $7.4 billion.

To my way of thinking, if the fine/award isn't at least as much as the perps received in ill gotten gains, there is no incentive to not do the same or similar thing again. Let the apologists scream how that will bankrupt the company and about how "unfair" that would be to the workers when the company has to shut down. Fine. Sell the assets of the company and give the money to the workers who weren't involved in the crime. Send the C-Suite criminals to jail for a decade or so. Let's REALLY make sure that crime doesn't pay.

Miguelito Loveless

(4,776 posts)
6. My back of the envelope math
Fri Jan 24, 2025, 11:53 AM
Friday

says $5 billion at 10% annual return would yield over $7 billion in 4 years, not 15. Also, where can one get a guaranteed 10% return?

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