The maker of OxyContin and the company’s controlling family agreed Tuesday to pay a groundbreaking $270 million to Oklahoma to settle allegations they helped create the nation’s deadly opioid crisis with their aggressive marketing of the powerful painkiller.
It is the first settlement to come out of the recent coast-to-coast wave of nearly 2,000 lawsuits against Purdue Pharma that threaten to push the company into bankruptcy and have stained the name of the Sackler family, whose members rank among the world’s foremost philanthropists.
“The addiction crisis facing our state and nation is a clear and present danger, but we’re doing something about it today,” Oklahoma Attorney General Mike Hunter said.
Nearly $200 million will go toward establishing a National Center for Addiction Studies and Treatment at Oklahoma State University in Tulsa, while local governments will get $12.5 million. The Sacklers are responsible for $75 million of the settlement.
In settling, the Stamford, Connecticut-based company denied any wrongdoing in connection with what Hunter called “this nightmarish epidemic” and “the worst public health crisis in our state and nation we’ve ever seen.”
The deal comes two months before Oklahoma’s 2017 lawsuit against Purdue Pharma and other drug companies was set to become the first one in the recent barrage of litigation to go to trial. The remaining defendants still face trial May 28.
Opioids, including heroin and prescription drugs such as OxyContin, were a factor in a record 48,000 deaths across the U.S. in 2017, according to the Centers for Disease Control and Prevention. Oklahoma recorded about 400 opioid deaths that year. State officials have said that since 2009, more Oklahomans have died from opioids than in vehicle crashes.
Other states have suffered far worse, including West Virginia, with the nation’s highest opioid death rate. It had over 1,000 deaths in 2017.
In a statement, Purdue Pharma said the money that will go toward addiction studies and treatment in Oklahoma will help people across the country. CEO Craig Landau said the company is committed to “help drive solutions to the opioid addiction crisis.”
Plaintiffs’ attorney Paul Hanly, who is not involved in the Oklahoma case but is representing scores of other governments, welcomed the deal, saying: “That suggests that Purdue is serious about trying to deal with the problem. Hopefully, this is the first of many.”
But some activists were furious , saying they were denied the chance to hold Purdue Pharma fully accountable in public, in front of a jury.
“This decision is a kick in the gut to our community,” said Ryan Hampton, of Los Angeles, who is recovering from opioid addiction. “We deserve to have our day in court with Purdue. The parents, the families, the survivors deserve at least that. And Oklahoma stripped that from us today.”
Purdue Pharma introduced OxyContin in the 1990s and marketed it hard to doctors, making tens of billions of dollars from the drug. But the company has been hit with lawsuits from state and local governments trying to hold it responsible for the scourge of addiction.
The lawsuits accuse the company of downplaying the addiction risks and pushing doctors to increase dosages even as the dangers became known. According to a court filing, Richard Sackler, then senior vice president responsible for sales, proudly told the audience at a launch party for OxyContin in 1996 that it would create a “blizzard of prescriptions that will bury the competition.”
Earlier this month, Purdue Pharma officials acknowledged that they are considering bankruptcy . But Oklahoma’s attorney general said the company gave assurances it will not take such a step in the near term. And he said the settlement money is “bankruptcy proof” – that is, “it’s not at risk in the event Purdue declares bankruptcy.”
Lance Lang, a 36-year-old recovering user from Oklahoma City, said he is glad some of the settlement will go toward helping those still suffering from addiction.