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Under Proposed Purdue Pharma Opioid Settlement, Sacklers Would Still Be Billionaires

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The owners of Purdue Pharma will keep their billionaire status even if they agree to a reported $10 to $12 billion settlement of thousands of lawsuits filed against the company, Forbes estimates. 

If the Sackler family, which owns Purdue Pharma, accepts the terms of a settlement now under discussion, Forbes estimates they will still be worth between $1 billion and $2 billion, down from a current net worth estimate of $11.2 billion. The proposed settlement, first reported by NBC News, comes after more than 2,000 lawsuits have been filed against the company for its role in fueling the opioid crisis. Purdue Pharma manufacturers painkiller OxyContin, and is accused of aggressively and deceptively marketing its painkillers to doctors, downplaying the risks of addiction.

Purdue said in a statement: “While Purdue Pharma is prepared to defend itself vigorously in the opioid litigation, the company has made clear that it sees little good coming from years of wasteful litigation and appeals. The people and communities affected by the opioid crisis need help now. Purdue believes a constructive global resolution is the best path forward, and the company is actively working with the state attorneys general and other plaintiffs to achieve this outcome.”

As part of the settlement, the Sackler’s would be required to pay $3 billion of their own money, according to a New York Times report. In addition, they would be required to sell Mundipharma, another drug company they own, and give away $1.5 billion from the proceeds. Forbes estimates Mundipharma is worth about $1.7 billion. 

As for the family’s largest asset, Purdue Pharma, the company would file for bankruptcy and switch from being a private company to a “public beneficiary trust,” according to the Times. All profits from drug sales would go to the states, cities, towns and tribes who filed the lawsuits against Purdue Pharma, the Times reported.

News of the settlement comes days after a judge in Oklahoma ruled for the first time that a different pharmaceutical company, Johnson & Johnson, was also responsible for the opioid epidemic and was ordered to pay $572 million. Johnson & Johnson said it would appeal the ruling.

In 2007, Purdue Pharma and three of the company’s top executives collectively paid a $634 million fine after pleading guilty to charges of misbranding Purdue’s highly-addictive OxyContin as safer than it was. According to Symphony Health Solutions, a healthcare and pharmaceutical data analytics company, roughly 80% of Purdue Pharma’s sales come from OxyContin.

In response to the lawsuits, several cultural and arts organizations that once accepted donations from the Sacklers have severed ties with the family. In July, the Louvre became the first major museum to remove the Sackler family name from its walls.

Doctors Arthur, Mortimer and Raymond Sackler founded Purdue Pharma in 1952 after taking over a small, struggling New York drug manufacturer. Today, an estimated 20 family members share the fortune. 

Forbes reporter Angel Au-Yeung contributed to this report.

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