Purdue Pharma Nearing $7.4 Billion Settlement Over OxyContin Lawsuits

WASHINGTON — Purdue Pharma, which developed the dangerous pain medication, Oxycontin, is prepared to reach a $7.4 billion settlement over the opioid crisis it helped create.

It was announced Monday that the proposed settlement has gained support from the attorney general of every U.S. state, along with several territories.

The settlement is aimed at helping resolve thousands of lawsuits related to the drug.

The deal includes $6.5 billion from members of the Sackler family, who currently own the company but would lose it as part of the settlement. The other $900 million would come from Purdue Pharma. 

The money would go to state and local governments, Native American tribes, and individual victims of the opioid epidemic. 

Purdue would be required to shift its mission toward fighting the opioid crisis, which includes continuing to manufacture the drug naloxone, which reverses overdoses.

A new board appointed by state governments would oversee the restructured company.

The settlement still requires court approval.

"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 1, and serve the public good," Purdue Board Chairman Steve Miller said.

"I sincerely thank our stakeholders for their dedication and collaboration, and I look forward to having the plan confirmed and consummated as quickly as possible."