OKLAHOMA CITY (AP) — The maker of OxyContin and the family that owns the company have reached a $270 million settlement with the state of Oklahoma over the prescription painkiller's role in the nation's deadly opioid crisis, a person familiar with the agreement said Tuesday.
The person was not authorized to discuss the matter publicly and spoke on condition of anonymity. Oklahoma's attorney general scheduled an afternoon news conference to announce the settlement with Stamford, Connecticut-based Purdue Pharma and its controlling Sackler family.
The money will go toward establishing the National Center for Addiction Studies and Treatment at Oklahoma State University in Tulsa.
The deal comes two months before Oklahoma's lawsuit against Purdue and other pharmaceutical companies blamed for the crisis was set to go to trial.
Purdue Pharma introduced OxyContin more than 20 years ago and marketed it aggressively to doctors. It has made billions of dollars from the drug in but has been hit with close to 2,000 lawsuits from state and local governments trying to hold the company responsible for the scourge of addiction.
Prescription opioids like OxyContin were a factor in a record 48,000 deaths across the U.S. in 2017, according to the U.S. Centers for Disease Control and Prevention.
Purdue Pharma has settled other lawsuits over the years, and three executives pleaded guilty to criminal charges in 2007. But this is the first settlement to come out of the current coast-to-coast wave of litigation that focuses largely on the company's more recent conduct and threatens to push it into bankruptcy.
The agreement was announced after the Oklahoma Supreme Court on Monday denied a request from drugmakers to postpone the start of the state's trial in May.
A lawyer suing Purdue on behalf of local governments across the country welcomed the settlement.
"That suggests that Purdue is serious about trying to deal with the problem," said Paul Hanly, who is not involved in the Oklahoma case but is representing scores of other governments. "Hopefully, this is the first of many."
But Cheryl Juaire, whose 23-year-old son Corey died of an overdose in 2011, said she was devastated to hear about the settlement. She had been organizing a group of hundreds of mothers to go to the first day of the trial and stand outside with photos of their dead children.
Jauire, who lives in Marlborough, Massachusetts, said a complete airing of the facts is the only way to fully hold Purdue to account.
"They can't settle," she said. "That would be a huge disservice to the tens of thousands of families here in the United States who buried a child. That's blood money from our children."
Sandy Coats, an attorney for Purdue Pharma, did not immediately return a call seeking comment.
Oklahoma sued several opioid manufacturers in all in 2017, accusing them of fraudulent marketing practices that led to thousands of overdoses and deaths. State officials have said that since 2009, more Oklahomans have died from opioids than in vehicle crashes. The remaining defendants still face trial.
It would be the first in the current round of lawsuits brought against the industry in the U.S. to go to trial.
The Sackler family is responsible for $75 million of the $270 million settlement, according to the person familiar with the agreement.
As the accusations have mounted, the Sacklers have faced personal lawsuits and growing public pressure. A Massachusetts court filing made public earlier this year found that family members were paid at least $4 billion from 2007 until last year.
The Sacklers are major philanthropists, and the family name is emblazoned on the walls at many of the world's great museums and universities. But in the past few weeks, the Tate museums in London and the Guggenheim Museum in New York have cut ties with the family, and other institutions have come under pressure to turn down donations or remove the Sackler name.
This month, Purdue Pharma officials acknowledged that are considering filing for bankruptcy because of the crush of lawsuits.
More than 1,400 federal lawsuits against pharmaceutical companies have been consolidated in front of a single judge in Cleveland who is pushing the drugmakers and distributors to reach a nationwide settlement with state and local governments.