Sacklers Raise Their Offer to Settle Opioid Lawsuits by More Than $1 Billion

According to a report filed Friday, members of the Sackler family have sweetened their cash offer to settle thousands of lawsuits against them and their company, Purdue Pharma, offering up to $6 billion, an increase of more than $1 billion from an earlier offer.

The deal is not done. At the beginning of the case, the Sacklers drew a line in the sand. They are demanding an end to all civil claims against them related to the drugs in exchange for their billions.

Legal experts and the public have criticized the Sackler family for seeking personal protection from liability. It is a shield that is granted to companies seeking restructuring, but not to owners who do not file for personal bankruptcy. The Sackler liability shields made eight states and the District of Columbia refuse to sign on to an earlier proposal.

According to the report, the states have now agreed to the new offer. The deal is not done yet.

The earlier offer included a pledge from the Sacklers to pay out over nine years. The Sacklers would pay a total of $5.5 billion, with an additional contribution of up to $500 million, contingent on the sale of their international pharmaceutical companies. The Sacklers would have 18 years to pay the additional $1 billion.

The Sackler money, plus billions more from Purdue, must be given to funds for states, municipalities and tribes dedicated to the treatment and prevention of opiate addiction, and to compensate victims.

The holdouts, including Connecticut, Washington, California and Maryland, have been at the mediation table with the Sacklers since January.

The stay against all litigation against both Purdue and the Sacklers was extended this week and is set to end on March 3.

A representative of one branch of the family, descendants of Mortimer Sackler, declined to comment, while representatives of another branch, descendants of Raymond Sackler, did not respond to a comment request.

The deadline for mediation talks has been extended by Judge Chapman. She suggested that there could be further talks or a different set of plans that would not require unanimity.

The Second Circuit Court of Appeals is where the appeal will be heard. There are expected to be arguments in April.

We remain focused on achieving our goal of providing urgently needed funds to the American people. We believe a global settlement is the most cost-effective exit path from Chapter 11 and we will continue working to build consensus as we proceed through the appeal process with the United States Court of Appeals for the Second Circuit.