The epidemic of opioid addiction has caused approximately 500,000 deaths. Purdue Pharma has largely been held responsible for the opioid epidemic: “Purdue filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and members of the Sackler family of igniting the opioid epidemic through deceptive marketing of OxyContin, a highly addictive pain drug.” Purdue Pharma is owned by the Sackler family.

Overruling objections from 20 states and the Department of Justice (“DOJ”), a federal bankruptcy judge approved a six-billion-dollar settlement funded by the Sackler family owners. The settlement would establish a trust that would consist of 5.5-6 billion dollars and be used to pay victims of painkiller addiction, states, hospitals, and others who argued that Purdue Pharma is responsible for the opioid epidemic. However, final approval has not yet been granted because it must be written into the reorganization plan. The DOJ United States Trustee Program (“USTP”) argues that it is still being litigated whether the Sackler family can receive legal immunity from the payment in the Second Circuit Court of Appeals. The 20 states objected because this new settlement provides a 277-million-dollar settlement that goes to states other than the objecting 20 because those states helped negotiate the deal.

Victims were able to confront the Sackler family in a virtual hearing via Zoom because of COVID-19 restrictions. The victims recounted the harrowing stories of what they have faced because of what they see as the Sackler family’s actions. It remains to be seen what decision the Second Circuit will bring to determine if the Sackler family can escape legal liability on instruction from a bankruptcy court which the District Court held that fell outside the powers of the bankruptcy court. A powerful family may be able to escape further liability through a settlement, but the victims of the epidemic will have to live with these addiction scars forever.