State Attorney General Peter Neronha says Rhode Island and seven other states have agreed to settle a longstanding legal battle with Purdue Pharma for its role in advancing the opioid epidemic.
In all, it is a 5 point 5-billion-dollar settlement, of which Rhode Island will receive 45 million dollars. That money will go to cities and towns throughout the state to deal with the overdose crisis.
That 45 million dollars is roughly double what the original offer from the company was. The new settlement keeps intact the original bankruptcy plan. The company will have to be dissolved or be sold by 2024.
Settlement highlights include:
- The Sackler families must pay a total of at least $5.5 billion, with the potential for up to $6 billion.
- Under this settlement, Rhode Island’s recovery more than doubles, from about $20 million to about $45 million. The first payment is expected this summer. A portion of the funds secured through the bankruptcy will flow directly to Rhode Island’s cities and towns, as with the distributors and J&J settlements announced earlier this year.
- Under this new plan, the payments are spread over 18 years, the same period of time as the settlement reached with the three largest pharmaceutical distributors, with larger payments front loaded so that the states will receive more money, sooner, as compared to the previous bankruptcy plan.
- The Sackler families will issue a statement expressing their regret for their role in the opioid epidemic and for the grief and loss it brought to the victims and families whose lives have been devastated.
“As I have said before, there is no amount of money that will be enough to undo or compensate Rhode Islanders for the harms perpetrated by Purdue and the Sacklers. I objected to the bankruptcy plan because, in my view, the plan didn’t provide justice or accountability, and didn’t provide adequate resources for treatment and recovery,” said Attorney General Neronha.
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