In a historic decision, a US court ruled on Tuesday that the Sackler family will have to pay $6 billion in fines and give up control of Purdue Pharma, in exchange for protection against opioid liability cases.
Purdue Pharma is a major pharmaceutical company in the US, created and owned by the Sackler family. In the 1990s, the company introduced a painkiller called Oxytocin. However, in a few years, it became apparent that the drug was highly addictive. It also came to light that the Sackler family knew of the drug’s addiction issues and turned a blind eye to it. Between the 1990s to 2020, it is estimated that more than half a million people lost their lives due to the opioid crisis created by Purdue.
As more and more lawsuits against the company came up, Purdue Pharma filed for bankruptcy in 2019. In 2021, the Sackler family arrived at a legal arrangement where they would give up any control over Purdue Pharma. They would also pay an additional $4.5 billion towards fighting the opioid crisis. In turn, they would get immunity from all lawsuits – current and future – related to the drug. However, this deal was rejected by a district judge after multiple parties objected to the terms.
The case was then re-appealed 2nd U.S. Circuit Court of Appeals in New York, which announced its decision on Tuesday. While the decision is being applauded for increasing the fine on the Sacklers, it must be noted that the decision is only valid in the 2nd circuit region of New York and neighboring states. It is likely that another case would be filed to reach a national resolution.
The Sackler family has also been one of the most influential art collectors and patrons. Over the decades, they have given funds and grants to numerous museums, including MMA. However, in recent years, fierce protests by activists (led by Nan Goldin) have forced many institutions to cut their ties with them.
