Purdue Pharma Sentenced to $225 Million Forfeiture in Criminal Case, Clearing Path for Settlement

A federal judge is expected to sentence OxyContin maker Purdue Pharma to forfeit $225 million to the Justice Department, finalizing the criminal component of a massive settlement that could take effect May 1. Purdue Pharma pleaded guilty in November 2020 to three federal charges, admitting it paid doctors to prescribe opioids and failed to prevent diversion to the black market, though the government agreed not to collect $5.3 billion in criminal forfeitures and $2.8 billion in civil liabilities. The settlement requires Sackler family members, who received $10.7 billion from Purdue between 2008-2018, to pay up to $7 billion over 15 years while receiving legal immunity from opioid lawsuits, despite no criminal charges being filed against them. Purdue will be replaced by Knoa Pharma, a public benefit company with a state-appointed board, as part of a broader wave of opioid settlements exceeding $50 billion total to address a crisis linked to 900,000 U.S. deaths since 1999.

Criminal Sentencing and Plea Agreement Details

• ▪Purdue Pharma pleaded guilty to three federal criminal charges in November 2020
• ▪The $225 million forfeiture penalty was agreed to in a 2020 pact to resolve federal civil and criminal probes Purdue Pharma was facing
• ▪The U.S. government agreed not to collect $5.3 billion in criminal forfeitures and fines from Purdue Pharma as part of the plea deal
• ▪A judge is expected to sentence Purdue Pharma to forfeit $225 million to the Justice Department

Broader Settlement Structure and Financial Terms

• ▪Purdue Pharma paid law firms and other professionals working on all sides of the case more than $1 billion by the end of last year
• ▪Opioid-related settlements by drugmakers, wholesalers and pharmacies are worth more than $50 billion in total
• ▪The Purdue Pharma settlement was approved by a judge last year and could take effect May 1
• ▪The Purdue Pharma settlement requires Sackler family members to pay up to $7 billion over 15 years

Sackler Family Role and Accountability

• ▪Nearly half of the $10.7 billion Sackler family members received from Purdue Pharma was used to pay taxes on behalf of Purdue Pharma
• ▪Sackler family members have not been paid by Purdue Pharma since 2018
• ▪The last Sackler family members left Purdue Pharma's board in 2019
• ▪Richard Sackler called for a blizzard of prescriptions at a 1996 event to rally Purdue Pharma's sales force
• ▪Sackler family members received $10.7 billion in payments from Purdue Pharma from 2008 to 2018
• ▪Sackler family members who own Purdue Pharma are required to pay up to $7 billion to state, local and Native American tribal governments under the settlement

Victim Opposition and Calls for Individual Prosecutions

• ▪Susan Ousterman's son Tyler Cordiero died at age 24 in 2020 after overdosing on a mixture that included fentanyl

Perspective of Sackler family members

• ▪The Sackler family points to their cessation of payments from Purdue Pharma since 2018 as evidence of distancing from the company
• ▪The Sackler family characterizes nearly half of the $10.7 billion they received from Purdue Pharma as tax payments made on behalf of the company