A pharmaceutical giant and a billionaire family have struck a US$7.4 billion (AU$11.7 billion) settlement to resolve lawsuits over their role in the US opioid crisis. 

The deal, among the largest of its kind, aims to fund treatment, prevention, and victim compensation.

The agreement, announced by 15 state attorneys general, follows extensive litigation accusing Purdue Pharma, the maker of OxyContin, and its owners, the Sackler family, of aggressively marketing OxyContin while minimising its addiction risks. 

The Sacklers will pay US$6.5 billion (AU$10.2 billion) over 15 years, and Purdue Pharma will contribute US$900 million (AU$1.4 billion). 

Ownership of Purdue will transfer to state-appointed trustees, with profits directed towards opioid crisis mitigation.

Unlike a prior settlement rejected by the US Supreme Court, this agreement permits lawsuits against Sackler family members from entities not participating in the deal. A US$800 million (AU$1.26 billion) reserve is included for future claims.

Between US$800 million and US$850 million (AU$1.26 - 1.34 billion) will go directly to victims and families. 

This agreement comes after the US Supreme Court overturned a US$6 billion (AU$9.5 billion) settlement shielding the Sacklers from future lawsuits. This updated deal increases financial contributions and avoids blanket legal protections.

Since 2000, opioids have caused over 500,000 deaths in the US. 

Purdue joins other companies, distributors, and pharmacy chains that have reached settlements totalling US$50 billion (AU$79 billion) to address the epidemic.

The Sacklers, who deny wrongdoing, have faced widespread backlash, including the removal of their name from global institutions. 

The settlement will release over 30 million internal Purdue documents, detailing its actions during the opioid crisis. It awaits approval by courts, governments, and tribal authorities. 

Critics argue the Sacklers’ substantial offshore wealth remains largely untouched, but New York Attorney General Letitia James called the funds “a massive influx” to help communities recover.

If approved, the settlement will close a lengthy legal chapter while delivering vital resources to address a devastating public health crisis.

In Australia, the Australian arm of Purdue Pharma, Mundipharma, has previously been accused of false and misleading advertising of pain medications. 

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