Latest news with #Sacklers
Global News
9 hours ago
- Business
- Global News
New Purdue opioid crisis settlement builds ‘momentum' for Canada: B.C. AG
Recent settlements in U.S. government lawsuits against opioid manufacturer Purdue Pharma and the firm that allegedly consulted on boosting its sales have B.C.'s attorney general feeling 'heartened' as she pursues similar lawsuits in Canada. Monday saw 55 U.S. states and territories reach a US$7.5-billion settlement with Purdue, the maker of OxyContin, and members of the Sackler family that sought to hold them accountable for contributing to the opioid overdose crisis. As part of the settlement, the Sacklers will give up their control of the bankrupt company and will be barred from selling prescription opioids in the future. A federal judge said Wednesday that he will rule Friday on a plan for local governments and individual victims, who would also be entitled to compensation, to vote on approving the settlement by September, allowing it to proceed. Story continues below advertisement The announcement of the U.S. settlement came after the B.C. Supreme Court on Friday certified a class-action lawsuit by the province against McKinsey & Company, which is accused of advising Purdue and other drugmakers on how to market their opioid products in Canada. McKinsey has already had to pay over US$1 billion in penalties to settle similar lawsuits in the U.S., which also led to jail time for a McKinsey executive. 'I'm really pleased with the momentum,' B.C. Attorney General Niki Sharma told Global News in an interview. 'My job as attorney general is to make sure we pursue it very aggressively and as quickly as we can, so I am heartened by the success in the States and will keep on leading the charge here in Canada.' The B.C. lawsuit against McKinsey is separate from a larger class action against dozens of opioid manufacturers and distributors on allegations they downplayed the risk their products posed in order to rake in profits. That lawsuit was allowed to go ahead last fall and was certified in January. 2:00 Supreme Court upholds B.C. opioid lawsuit B.C. is leading both lawsuits on behalf of the other Canadian provinces and territories and the federal government, with the goal of recovering health-care costs that went toward responding to the overdose crisis, Sharma said. Story continues below advertisement 'We think it's unfair that companies that profited so much, knowing that their product was so harmful and that would cause this level of addiction, aren't paying for the costs of health care,' she said. A spokesperson for McKinsey told Global News it intends to defend itself against the lawsuit, which the company says is without merit. 'McKinsey did not undertake any work in Canada to enhance the sale or marketing of opioids,' the spokesperson said in an email. Alleged tactics to 'turbocharge' opioid sales B.C.'s lawsuit against McKinsey alleges the Canadian subsidiaries of Purdue, as well as Johnson & Johnson, Janssen and other drugmakers, employed many of the same tactics used by U.S. parent companies to boost their sales. Get weekly health news Receive the latest medical news and health information delivered to you every Sunday. Sign up for weekly health newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The B.C. Supreme Court, in certifying the lawsuit, noted in its decision that multinational companies often apply business and marketing strategies 'universally.' Story continues below advertisement Last December, McKinsey agreed to pay U$650 million to resolve a U.S. Justice Department lawsuit that focused on the firm's work with Purdue, including allegations that McKinsey advised on steps to 'turbocharge' sales of OxyContin. Martin Elling, a former McKinsey senior partner who worked on Purdue matters, was sentenced to six months in prison after pleading guilty to obstruction of justice related to that case. 2:42 Conservatives grill Trudeau on former McKinsey head connection ahead of committee appearance The federal settlement was on top of a combined US$641 million McKinsey agreed to pay in 2021 to resolve similar claims brought by U.S. state attorneys general. In total, federal and state lawsuits related to the opioid crisis have resulted in roughly US$50 billion in settlements, according to researchers from Johns Hopkins University who track such claims. Long-term heavy use of prescription painkillers like OxyContin due to dependence contributed to a majority of opioid-related hospitalizations and overdoses in the early 2000s across North America. In recent years, illicit opioids like fentanyl have overtaken prescription opioids as the primary driver of the opioid crisis. Story continues below advertisement Between 2016 and last September, nearly 51,000 Canadians have died of an opioid-related overdose, according to federal data. B.C., which declared a public health emergency in 2016, saw the most fatal overdoses of any other province during that time, with more than 16,000 deaths. 'I think like many provinces across this country, we've really seen the toll of the opioid crisis on people not only with long-lasting addictions and impacts there, but loss of life and a lot of people that are mourning the loss of their loved ones,' Sharma said. A spokesperson for Health Canada said the federal government 'believes companies should be held accountable for their role in the overdose crisis' and will continue to work with provinces and territories on B.C.'s legal actions. 'The overdose crisis continues to be one of Canada's most pressing public health challenges,' the spokesperson said in an email to Global News. Health Canada is reviewing and 'considering' developments from the recent Purdue settlement in the U.S., the statement added. Where should the money go? In 2022, B.C. secured a $150-million settlement on behalf of Canadian governments in a class action against Purdue. The settlement was finalized in early 2023, allowing individuals to submit claims from a $20-million portion set aside for victims and their families, a process that remains ongoing. Story continues below advertisement The pending lawsuit against opioid manufacturers and distributors names Purdue and its various subsidiaries, as well as Johnson & Johnson, Janssen and Canadian companies like Loblaw and its subsidiary Shoppers Drug Mart. It remains in litigation. 5:09 B.C. government steps up legal action against opioid drug makers Researchers writing in the International Journal of Drug Policy earlier this year urged Canadian governments to ensure funds recovered from opioid lawsuit settlements go directly toward combating the drug crisis, rather than unrelated government expenses. Those measures should include funding harm reduction services like overdose prevention centres and safe drug supplies, as well as community organizations that work directly with people suffering from addiction, the paper says. Efforts to track how U.S. state and local governments are spending their opioid settlement money have uncovered several examples of funds not being used to directly respond to the opioid crisis. Story continues below advertisement Canada is being urged to avoid similar 'pitfalls' by mandating that at least 85 per cent of recovered funds be allocated to 'opioid remediation efforts,' and working directly with community organizations and members affected by addiction. Proposed guidelines by researchers at Johns Hopkins University for how U.S. opioid settlement funds should be spent have been adopted in over 25 states, according to the university. Sharma said B.C.'s lawsuits are structured so that any funds recovered by the province will be mandated to go to the health-care system, but that could evolve depending on how settlements are structured. 'It may be that as this develops, and the opioid cases develop, it will be tied to organizations that do addictions treatment, or there could be a whole range of things that go directly towards this crisis,' she said. She pointed to the record $32.5-billion settlement B.C. won in March on behalf of Canadian governments in its lawsuit against the tobacco industry as a model both of the province's health-related legal advocacy and the results it can achieve. 'We are really focused on eliminating the bad actors,' she said. 'It's really important to make sure that we set a line in the sand about what's right and what isn't right with the conduct of all companies out there.'
Newsweek
2 days ago
- Business
- Newsweek
How Opioid Settlement Could Change Sackler Family Net Worth
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. After Purdue Pharma agreed to a $7.4 billion settlement, the Sackler family, the company's founders, could see a hit to their net worth. The company announced its settlement with all 55 attorneys general on Monday after longstanding allegations the company and the Sacklers played a role in creating and worsening the opioid crisis in America. Why It Matters Nearly 100,000 people die from opioids every year, making up the bulk of drug overdoses in the U.S. Across the country, Connecticut, New York, California, Colorado, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia led in negotiating the settlement agreement with Purdue Pharma and the Sacklers for their involvement in the opioid crisis. Purdue Pharma headquarters stands in downtown Stamford, April 2, 2019 in Stamford, Connecticut. Purdue Pharma headquarters stands in downtown Stamford, April 2, 2019 in Stamford, To Know This settlement, reached with all 50 states, Washington, D.C., and U.S. territories, requires the Sacklers to relinquish ownership of Purdue Pharma and bars them from engaging in future opioid sales in the country. The deal represents the largest settlement to date involving individuals held responsible for the opioid epidemic, which has resulted in significant financial and reputational consequences for the Sackler family. The $7.4 billion settlement also comes alongside a commitment by the company to dissolve and transfer its assets to a new company. The Sacklers will also have no ownership interest or role in the new company, consistent with how they've had no involvement in Purdue since the end of 2018, the company said. "Today, every single attorney general, representing all states and territories nationwide, has signed onto an historic settlement that permanently ends the Sacklers' control over Purdue and their ability to ever sell opioids again, and forces the company and the family to pay $7.4 billion for their role in igniting one of the most devastating public health crises in American history," Connecticut Attorney General William Tong said in a statement. That amount is $1.4 billion more than the settlement reached in 2022, and $3.1 billion more than the settlement Connecticut rejected in 2021. "I will continue to urge that the millions of dollars Connecticut receives be used to save lives through opioid treatment and prevention, as well as to provide direct support to victims and their families," Tong said. The settlement alleges that Purdue, while owned by the Sacklers, aggressively marketed opioid products for decades, leading to the opioid epidemic on a larger scale. The money will go toward local communities to support addiction treatment and prevention. In the first payment, the Sacklers are set to pay $1.5 billion, with Purdue paying another $900 million for affected communities. The company will then be responsible for paying $500 million the next year, another $500 million in two years and $400 million after three years. "What's interesting about the $7.4 billion Purdue Pharma settlement is that it's entirely being funded by the company and the Sackler family, unlike other opioid settlements that involved intermediaries like Walmart, CVS, and distributors," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "One of the biggest shifts here was the Supreme Court blocking the Sackler's from using bankruptcy protection, forcing them to pay directly. That decision alone changes the stakes for both accountability and restitution." The total value of the settlement is scheduled for distribution over 15 years, and the funds will primarily support opioid addiction prevention, treatment, and recovery initiatives nationwide. The Sackler family members included in the settlement include the eight heirs of Purdue founders Raymond and Mortimer Sackler who served on the Board of Purdue: Richard, Kathe, Mortimer Jr., Ilene, David, and Theresa Sackler as well as the estates of Jonathan and Beverly Sackler. While the Sacklers have denied any wrongdoing, the settlement strips them of ownership and control of Purdue Pharma, which will be restructured as a public benefit corporation. Profits from the restructured company will be directed exclusively to address the opioid crisis rather than private owners. This move significantly alters the family's involvement—and revenue—from the pharmaceutical sector. Purdue Pharma, under Sackler family leadership, introduced and promoted OxyContin beginning in the 1990s, aggressively marketing opioid products and facing mounting legal challenges as overdose deaths and addiction rates soared across the United States. What Is The Sackler's Net Worth? The new settlement increases a previous offer overturned by the Supreme Court from $6 billion to $7.4 billion, emphasizing both the financial and legal pressure on the Sackler fortune. Although the payments are substantial, details on the family's exact remaining wealth after settlement disbursements have not been disclosed by the parties involved. As of 2024, the family's collective net worth was estimated at $10.8 billion. "This ruling is a massive blow," Thompson said. "Their assets are now being tapped for restitution to the millions of victims, which will severely impact their liquid net worth which is reported to be roughly $11 billion." Newsweek reached out to Purdue Pharma and the Sackler family via email. What People Are Saying Purdue Board Chairman Steve Miller said in a statement: "Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today's filing is a major milestone in that effort. We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good. Connecticut Attorney General William Tong said in a statement: "There will never been enough justice, accountability or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family's craven misconduct. What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles all the way up to the U.S. Supreme Court." What Happens Next The local government sign-on and voting solicitation process for the settlement will depend on bankruptcy court approval. A hearing is scheduled in the coming days. "The settlement could hopefully mark the beginning of a shift in the war against the epidemic, as funding would not only be available to thousands of victims who filed lawsuits, but those dollars could also be used to back prevention and recovery programs nationwide," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
Yahoo
4 days ago
- Business
- Yahoo
States agree to $7.4 billion settlement with Purdue Pharma in opioid litigation
All 50 states as well as Washington, D.C., and four U.S. territories have agreed to sign a $7.4 billion settlement with the company and once-prominent family behind OxyContin, officials announced Monday. The settlement resolves pending litigation against Purdue Pharma, which, under the leadership of the Sackler families, invented, manufactured and aggressively marketed opioid products for decades, according to the lawsuits. States and cities across the country said it fueled waves of addiction and overdose deaths. The attorneys general in 55 states and territories have signed on to the historic settlement, which they said will end the Sacklers' ownership of Purdue and bar them from making, selling or marketing opioids in the U.S. MORE: Purdue Pharma, Sackler families boost contribution in opioid settlement to $7.4 billion California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia led the team that negotiated the settlement, which marks the largest of its kind involving the opioid crisis, officials said. "As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products," Pennsylvania Attorney General Dave Sunday said in a statement. "This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth. My office will continue engagement with municipal leaders to ensure millions of dollars reach every corner of the state." Purdue introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for Chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The U.S. Supreme Court overturned a prior settlement in June 2024 that would have awarded $6 billion to state and local governments. The Sacklers and Purdue subsequently boosted their settlement contribution to $7.4 billion. "Today's announcement of unanimous support among the states and territories is a critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis, and deliver opioid use disorder and overdose rescue medicines that will save American lives," Purdue said in a statement on Monday. "We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved." The $7.4 billion will support opioid addiction treatment, prevention and recovery programs over the next 15 years. A significant amount of the funds will be distributed in the first three years, with the Sacklers paying $1.5 billion and Purdue paying approximately $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. MORE: Supreme Court blocks Purdue Pharma opioid settlement that shields Sackler family of liability 'There will never be enough justice, accountability or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family's craven misconduct," Connecticut Attorney General William Tong said in a statement on Monday. "What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles all the way up to the U.S. Supreme Court." Now that the state sign-on period has ended, local governments across the country will be asked to join the settlement, contingent on bankruptcy court approval. A hearing on that matter is scheduled on Wednesday. A board of trustees selected by participating states in consultation with other creditors will determine the future of Purdue, which will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids. ABC News' Aaron Katersky contributed to this report. States agree to $7.4 billion settlement with Purdue Pharma in opioid litigation originally appeared on
Global News
4 days ago
- Business
- Global News
Purdue Pharma, Sackler family to settle U.S. opioid lawsuits for US$7.4B
Purdue Pharma has won support from the attorneys general of 55 U.S. states and territories for its $7.4 billion settlement to resolve thousands of opioid lawsuits against the drugmaker and its owners, members of the Sackler family. A framework for the settlement had been announced in January by New York Attorney General Letitia James and other states, and the support announced on Monday could help Purdue Pharma win court approval for its bankruptcy reorganization. The $7.4 billion payment is intended to resolve claims that the drugmaker's pain medication OxyContin caused a nationwide opioid addiction crisis. It includes about $6.5 billion from the Sacklers and about $900 million from Purdue Pharma. Payouts would begin after the drugmaker wins sufficient creditor support for its Chapter 11 plan. Money would go to individuals, state and local governments, and Native American tribes, and the Sacklers would cede control of Purdue and be barred from selling opioids in the United States. Story continues below advertisement 'For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic,' James said in a statement. 'While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis.' Get weekly health news Receive the latest medical news and health information delivered to you every Sunday. Sign up for weekly health newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy According to several attorneys general, Monday's agreements do not include Oklahoma, which in 2019 reached a $270 million settlement with Purdue Pharma and the Sacklers to resolve opioid-related claims. 1:01 U.S. Supreme Court rejects national opioid settlement with Purdue Pharma Last June, the U.S. Supreme Court rejected an earlier settlement that would have given the Sacklers broad immunity from opioid-related civil lawsuits. The Sacklers would have paid about $6 billion under that settlement. More than 850,000 people have died from opioid-related overdoses since 1999, according to the U.S. Centers for Disease Control and Prevention, though deaths have recently declined. In 2022, Purdue agreed to pay $150 million to Canadian provinces and territories to resolve a class-action lawsuit against the company over the opioid crisis in Canada. The sum was the largest settlement for a government health claim in Canadian history. Story continues below advertisement —With additional files from Global News
The Hill
4 days ago
- Business
- The Hill
All states, territories agree to $7.4B Purdue Pharma opioid settlement
The attorneys general of all 50 states, Washington D.C. and four territories have agreed to sign on to a $7.4 billion settlement with Purdue Pharma and the members of the Sackler family who own the company. The settlement seeks to resolve thousands of lawsuits over the opioid crisis. The family members would acknowledge their role in contributing to the epidemic with rampant production and aggressive marketing of opioids for decades. According to the attorneys general, local governments across the country will now be asked to join the settlement contingent on bankruptcy court proceedings. The next hearing is slated for Wednesday, when U.S. Bankruptcy Judge Sean Lane will consider Purdue Pharma's request to set a schedule to confirm the company's settlement. 'There will never [be] enough justice, accountability or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family's craven misconduct. What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles all the way up to the U.S. Supreme Court,' Connecticut Attorney General William Tong (D) said in a statement. The settlement was first announced in January. A prior agreement was invalidated by the Supreme Court last June due to a provision in the deal immunizing some members of the wealthy Sackler family from civil lawsuits in exchange for $6 billion. If approved, the settlement would be the largest to date with individuals responsible for contributing to the deadly opioid epidemic. Local, state, Native American tribal governments and others have filed thousands of lawsuits seeking to hold manufacturers, distributors and pharmacies responsible. The deal was negotiated by a bipartisan team comprised of attorneys general from Connecticut, California, Texas, Colorado, Delaware, New York, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia. The settlement would deliver funds to the participating states, local governments, affected individuals and other parties who have sued the Sacklers or Purdue. If finalized, most of the settlement funds would be distributed in the first three years. The Sacklers would pay $1.5 billion and Purdue would pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.
