Today the US Supreme Court rejected a nationwide settlement with Purdue Pharma that would have shielded members of the Sackler family, the owners of the company, the maker of OxyContin, from civil lawsuits but also would have provided billions of dollars to combat the opioid epidemic.
June 27, 2024, Salt Lake City, Utah
In 2019, the Utah Department of Commerce’s Division of Consumer Protection, through the Utah Attorney General’s Office, brought legal action against Purdue Pharma (Stamford, CT) and Richard and Kathe Sackler, alleging that they deceptively marketed the pain relief drug OxyContin as less prone to abuse and addiction and, through their actions, created a public health crisis.
The Division of Consumer Protection further alleged Purdue Pharma fueled the crisis in Utah by providing $200,000 in gifts and payments to Utah prescribers between 2013 and 2017. It employed 186 sales representatives in Utah to make in-person marketing visits to 5,000 prescribers in their medical offices to push the drug. Utah has been at the forefront of efforts to hold Purdue and the Sacklers accountable for their conduct and the deadly consequences in Utah and is reviewing the high court’s ruling to determine the state’s next steps.
In 2019, Purdue Pharma filed for bankruptcy, and the Division’s action was stayed pending the outcome of the bankruptcy proceeding. Working alongside other states and interested parties, Utah participated in negotiating a Bankruptcy Plan with the Respondents. As part of the plan, the Sacklers were to pay $5.5 billion to resolve opioid claims against them personally, with about $3.9 billion going to states, cities, and counties nationwide.
Today, in a narrow 5-4 ruling, the Supreme Court invalidated the Bankruptcy Court’s release of claims against the Sacklers as part of the bankruptcy plan. The Bankruptcy Court has entered a 60-day stay on the bankruptcy proceeding to allow the parties to seek again a negotiated resolution of the claims against Purdue and the Sackler family. Further litigation is expected if that process is unsuccessful.
“While this is a temporary setback in ensuring some measure of justice for Utah families and in securing funds and injunctive relief to address the ongoing opioid epidemic in Utah, we also understand the Supreme Court’s rationale,” said Utah Attorney General Sean D. Reyes.
“The good news is that Utah was ahead of most states and won key legal victories in court before the settlement. And if a new agreement can’t be reached, Utah will again be at the national forefront of holding the Sacklers, the directors behind Purdue, to account for what they unleashed in Utah and the nation. We will not be deterred in seeking justice,” continued Reyes.
“Purdue Pharma’s deceptive practices have had a devastating ripple effect in our communities and have cost thousands of Utahns’ lives,” said Margaret Busse, Executive Director of the Utah Department of Commerce. “While today’s decision delays the much-needed relief, we are committed to holding Purdue Pharma accountable and protecting Utahns. Despite the obstacles presented by the Court's ruling, Utah remains steadfast in its commitment to holding Purdue Pharma and the Sackler family accountable for their roles in fueling the local and national opioid epidemic. The state's resolve to pursue justice and secure necessary resources for prevention, treatment, and recovery initiatives is undeterred.”
Between 1999 to 2021, nearly 645,000 people died from a prescription or illicit opioid, nearly 300,000 from prescription opioid overdoses alone, according to the Centers for Disease Control and Prevention.