Texas is set to receive $286.5 million as part of a $7.4 billion settlement with Purdue Pharma and the Sackler family, Attorney General Ken Paxton announced.
The agreement, which was finalized last year and has now taken legal effect, is part of broader efforts to hold the pharmaceutical company and its owners accountable for their role in the nationwide epidemic.
In total, Paxton said Texas has secured more than $3 billion in total opioid-related settlements.
Purdue Pharma filed for bankruptcy in September 2019 following investigations by a coalition of states and a 2018 lawsuit led by Texas. Paxton played a leading role in negotiating the final settlement during the bankruptcy process.
“For years, I have fought relentlessly to ensure Big Pharma pays for its role in causing the opioid crisis, and this settlement is an important step in securing justice for victims,” Paxton said in a news release. “While no amount of money can undo the devastation caused by the opioid crisis, these funds will be used to both hold Purdue Pharma and the Sackler family accountable as well as help those affected to recover and rebuild.”
The settlement provides funding to states, communities, and individuals affected by the crisis, with most payments scheduled for distribution within the first three years. The Sackler family is expected to contribute more than $1.5 billion on May 4, followed by additional payments over the next several years. Purdue will also provide about $900 million upfront.
As part of the agreement, the Sackler family is permanently barred from selling opioids in the United States. The funds will support addiction treatment, prevention, and recovery programs nationwide over the next 15 years.
The settlement also restructures Purdue’s operations. The company’s manufacturing business has been transferred to a new entity, Knoa Pharma LLC, which an independent board will oversee with no prior ties to Purdue. The agreement prohibits the new company from marketing opioids and includes oversight measures intended to prevent misuse or diversion of prescription drugs.
Perdue’s website states that the company ceased operations permanently as of May 1 and directs customers to the Knoa Pharmacy website.
In addition, Purdue and the Sacklers will be required to release more than 30 million documents related to their opioid business as part of the settlement.
