Federal Appeals Court Approves Deal Granting Immunity to Sackler Family and Allocating Funds to Combat Opioid Crisis

A federal appeals court has approved a deal that will grant immunity to the billionaire Sackler family, owners of Purdue Pharma, from all current and future civil claims related to the company’s role in the opioid crisis.

The plan approved by the 2nd U.S. Circuit Court of Appeals in New York will see Purdue Pharma become a new company known as Knoa, with its profits being sent to a fund to prevent and treat addiction. The Sackler family will also give up ownership of the Stamford, Connecticut-based company.

The court found that the family’s collective fortune, much of it held offshore, is worth up to $6 billion. As part of the settlement, family members will contribute $5.5 billion to $6 billion in cash over time, or around half of this amount.

The Sackler family has been at the center of the opioid crisis for years, as Purdue Pharma’s OxyContin has been widely blamed for fueling the epidemic. The company has already paid out billions of dollars in fines and settlements related to its role in the crisis.

The settlement approved by the court on Tuesday is the latest development in the ongoing saga of the opioid crisis. It is hoped that the money from the Sackler family will help to fund much-needed addiction treatment and prevention programs.