(The Center Square) – Maryland could see as much as $132.2 million from settlements reached with the Sackler family, Attorney General Brian Frosh said.
Maryland’s top law enforcement official said Thursday morning that a new $6 billion settlement has been reached, which is contingent upon court approval, that would see seven states and the District of Columbia benefiting from the agreement from a case against Purdue Pharma and the Sackler family.
“This hard-won settlement is a tremendous benefit for the country,” Frosh said in the release. “It will save lives and continue our pursuit of justice for all who have suffered from the epidemic that has destroyed so many families and communities.
“For decades, the Sacklers have evaded the law and engaged in a relentless, misleading marketing campaign that left millions ravaged by opioid addiction. We hope that today’s settlement will help make real progress against this crisis here in Maryland and across the country.”
The new settlement, according to the release, comes following weeks of mediation and will net the state $39.6 million. The decision stems from Frosh challenging the $4.325 billion Purdue bankruptcy plan that released the Sackler family from all liability stemming from the opioid epidemic.
Maryland stands to receive an estimated $121.9 million to $132.2 million overall from the settlements, with funds earmarked for opioid treatment and prevention.
The Sackler family, according to the release, owned and controlled OxyContin producer Purdue Pharma. The settlement will provide additional payments ranging between $1.175 billion to $1.675 billion, which is a nearly 40% increase in the $4.325 billion settlement agreed to in August 2021.
Under the settlement, according to the release, Purdue’s remaining assets will be distributed, injunctive relief will be provided, and the Sacklers are to permanently exit the global opioids business.
The additional $1.675 billion placed into the settlement, according to the release, will benefit the state, local, and tribal governments in the state and across the country.
According to the release, Frosh began an investigation in 2016 into Purdue and the Sackler family members for their roles in what he felt were deceptive and unfair marketing practices of OxyContin and other opioids that were in violation of the state’s Consumer Protection Act.
Frosh filed the enforcement action against the pharmaceutical company and the family in 2019, and the company filed for bankruptcy before the scheduled trial was to begin. Meanwhile, the company was able to secure a stay from the bankruptcy court for all litigation against the Sacklers and the company.
Maryland, according to the release, worked closely with other states throughout litigation, taking the lead in calling witnesses and cross-examining members of the Sackler family.
With the bankruptcy court confirming the settlement, Maryland and other states appealed the decision in the U.S. District Court for the Southern District of New York, which overturned the plan. Upon the Sackler family appealing the ruling, the new deal was reached through mediation to add the additional $1.675 billion to the settlement.
The settlement, once it gains approval, requires the Sackler family to pay $6 billion to the states, over a span of 18 years with frontloaded large payments.
The Sackler family, according to the release, will provide statements of regret for their role in the epidemic, have their names removed from buildings, scholarships, and fellowships, and require Purdue to make public documents that were previously withheld as privileged information.
This article was oringally published on TheCenterSquare.com.