Oxycontin
Toby Talbot/AP

Ed Silverman, a senior writer and Pharmalot columnist at STAT, has been covering the pharmaceutical industry for nearly three decades. He is also the author of the morning Pharmalittle newsletter and the afternoon Pharmalot newsletter.

Purdue Pharma and members of the Sackler family that own the company have agreed to a $7.4 billion settlement in principle with 15 states to resolve thousands of lawsuits filed over the role they allegedly played in fomenting the long-running opioid crisis in the U.S.

The tentative agreement in a federal bankruptcy court adds $1.4 billion to a previous deal that had been scuttled last year by the U.S. Supreme Court over the insistence of some Sackler family members who sought immunity from future lawsuits. That demand prompted objections because — unlike Purdue, which marketed OxyContin — none of the Sacklers themselves had filed for bankruptcy protection.

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Under the new terms, the Sacklers would not receive immunity, but will pay $6.5 billion, which is $500 million more than their initial $6 billion offer. However, the states, municipalities, Native American tribes, and individuals who filed suit will now have to set aside up to $800 million for as long as five years in an account that the Sackler family members could use to defend against any cases.

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