The person was not authorized to discuss the matter publicly and spoke on condition of anonymity. Oklahoma’s attorney general scheduled an afternoon news conference to announce the settlement with Stamford, Connecticut-based Purdue Pharma and its controlling Sackler family.
Nearly $200 million of the settlement will go toward establishing the National Center for Addiction Studies and Treatment at Oklahoma State University in Tulsa. Local governments will get $12.5 million.
The deal comes two months before Oklahoma’s lawsuit against Purdue Pharma and other drug companies was set to become the first one in the current coast-to-coast wave of litigation against the industry to go to trial. This is the first settlement to come out of the barrage of lawsuits.
Plaintiffs’ attorney Paul Hanly, who is not involved in the Oklahoma case but is representing scores of other governments, welcomed the settlement, 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, 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.”
He added: “We cannot allow Purdue to cut backroom deals with state attorneys general.”
Sandy Coats, an attorney for Purdue Pharma, did not immediately return a call seeking comment.
Prescription opioids like 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.
Purdue Pharma introduced OxyContin more than 20 years ago and marketed it aggressively to doctors. It has made tens of billions of dollars from the drug in but has been hit with close to 2,000 lawsuits from state and local governments trying to hold the company responsible for the scourge of addiction. Those lawsuits now threaten to push Purdue Pharma into bankruptcy.
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 that it would create a “blizzard of prescriptions that will bury the competition.”
Purdue Pharma has settled other lawsuits over the years, and three executives pleaded guilty to criminal charges in 2007. But this is the first settlement to come out of the surge of litigation that focuses largely on the company’s more recent conduct.
The agreement was announced after the Oklahoma Supreme Court on Monday denied a request from drugmakers to postpone the start of the state’s trial in May.
Cheryl Juaire, whose 23-year-old son Corey died of an overdose in 2011, said she was devastated to hear about the settlement. She had been organizing a group of hundreds of mothers to go to the first day of the trial and stand outside with photos of their dead children.
Jauire, who lives in Marlborough, Massachusetts, said a complete airing of the facts is the only way to fully hold Purdue to account.
“They can’t settle,” she said. “That would be a huge disservice to the tens of thousands of families here in the United States who buried a child. That’s blood money from our children.”
Oklahoma sued Purdue Pharma and several other opioid manufacturers in 2017, accusing them of fraudulent marketing practices that led to thousands of overdoses and deaths. State officials have said that since 2009, more Oklahomans have died from opioids than in vehicle crashes. The remaining defendants still face trial.
The Sackler family is responsible for $75 million of the $270 million settlement, according to the person familiar with the agreement.
As the accusations have mounted, the Sacklers have faced personal lawsuits and growing public pressure. A Massachusetts court filing made public earlier this year found that family members were paid at least $4 billion from 2007 until last year.
The Sacklers are major philanthropists, and the family name is emblazoned on the walls at many of the world’s great museums and universities. But in the past few weeks, the Tate museums in London and the Guggenheim Museum in New York have cut ties with the family, and other institutions have come under pressure to turn down donations or remove the Sackler name.
This month, Purdue Pharma officials acknowledged that are considering filing for bankruptcy because of the crush of lawsuits.
More than 1,400 federal lawsuits against pharmaceutical companies have been consolidated in front of a single judge in Cleveland who is pushing the drugmakers and distributors to reach a nationwide settlement with state and local governments.
___
Mulvihill reported from Cherry Hill, New Jersey. Associated Press reporter Jill Bleed in Little Rock, Arkansas, contributed to this report.
The person in charge of auditing government programs, Kathleen Patterson does not agree with Mayor Muriel Bowsers budget proposal for the city.
The impacts of the police involved shooting death of unarmed 17-year-old Antwon Rose promoted hundreds of students in Pittsburgh, Pennsylvania to walk out of school.
There has been a fatal police shooting in Thurmont, Maryland. Officers were called to a home on Sandy Springs Lane around 1:30 this morning. The call was concerning a person with a gun outside of the home.
One person has been shot after a dispute by a resident and some people sitting inside of a car in the 800 block of Crittenden Street in Northeast.
This afternoon District 8 Prince George’s County Council Member Monique Anderson-Walker is planning to unveil the details of a new campaign to make busy and dangerous 210/ Indian Head Highway and other roads in the county safer.
Atlanta Police along with the Mayor of Atlanta Keisha Lance Bottoms have announced the creation of a task force to look into a string of murders of children that went unsolved between 1979 and 1981.
Police were called to a home on Marjon Court following reports of shots fired. Once there they found a man and woman dead. They had been shot to death. Early reports indicate they were married but did not live in the home.
Today marks one year ago that the lives were forever changed for students and the community at Great Mills High School in St. Maryland.
DC Ward 8 Council Member Trayon White has released a statement about a hit and run involving one of his vehicles.
Members of the Illinois Supreme Court have shot down a request by prosecutors to resentence a former Chicago Police officer involved in the death of Laquan McDonald.
Lawmakers in Montgomery County are looking changing the laws around the county’s school lead levels for water fountains. The decision for a tighter bill follows 249 schools fountains that tested positive for high lead levels. Well over the state lead water limits. The school systems says over 13-thousand school throughout the county were tested.
