NEW YORK – The manufacturer of Oxycontin has agreed to pay billions of dollars to 15 states, including New York, to end a years-long legal fight.
Purdue Pharma settled a lawsuit claiming its executives lied about the addictive nature of its drugs.
As part of the settlement, members of the Sackler Family, who founded the company, will pay out more than $4 billion to states over the next nine years.
The Sacklers must give up control of family foundations, and hand over $175-million in assets to a charity dedicated to ending the opioid crisis.
“The Sacklers will be permanently banned from the opioid business,” said Massachusetts Attorney General Maura Healey on Thursday. “Purdue Pharma will cease to exist. Every Sackler director and all of their CEOs have been required to answer our questions under oath, and the Sackler name won’t be on any more buildings or hospital wings or museums.”
The Sacklers and others are protected from future opioid-epidemic related litigation as part of the settlement. A federal judge must approve the agreement.
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