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A pharmacist holds a bottle OxyContin made by Purdue Pharma.
A pharmacist holds a bottle OxyContin made by Purdue Pharma. Photograph: George Frey/Reuters
A pharmacist holds a bottle OxyContin made by Purdue Pharma. Photograph: George Frey/Reuters

Purdue payments to Sackler family surged after OxyContin fine

This article is more than 4 years old

Family started taking far more money out of firm after it was fined for misleading marketing of drug

The wealthy owners of OxyContin maker Purdue Pharma started taking far more money out of the company after it was fined for misleading marketing of the powerful prescription painkiller.

Purdue made payments for the benefit of some members of the Sackler family totalling $10.7bn (£8bn) from 2008 through to 2017, a court filing made by the company on Monday evening shows.

That includes taxes and other payments. Family members received $4.1bn in cash over that period. By contrast, distributions for the benefit of family members from 1995 to 2007 totalled $1.3bn.

The total amount family members received from the company was made public in a filing in October, but the new report offers fresh details on when the money was distributed.

“Today’s report confirms what we revealed in our lawsuit: The Sacklers pocketed billions of dollars from Purdue while thousands of people died from their addictive drugs. This is the very definition of ill-gotten gains,” the Massachusetts attorney general, Maura Healey, the first attorney general to sue Sackler family members, said in a statement.

The Sacklers’ wealth has received intense scrutiny from Healey and 23 other state’s attorneys general who are objecting to a plan to settle 2,700 lawsuits against Purdue over the toll of opioids, including those filed by nearly every state.

The objecting attorneys general say the settlement does not do enough to hold the family accountable for the opioid crisis, which has been linked to more than 400,000 deaths in the US since 2000. Oxycontin accounts for 4% of opioid use.

The settlement calls for the family to contribute at least $3bn in cash over time and give up control of the company. In all, the plan could be worth up to $12bn over time.

But the offer comes with a major catch: the company says the family may back out if lawsuits against family members are allowed to move ahead. They’re all on hold for now as the company’s settlement efforts play out in bankruptcy court.

In a statement on Monday, Daniel Connolly, a lawyer for one branch of the Sackler family, said it was not helpful to argue over how much family members received.

“The Sackler family hopes to reach a productive resolution where they contribute Purdue for the public benefit and provide at least $3bn of additional money to help communities and people who need help now, which makes more sense for everyone than continuing litigation that only squander resources,” he said.

The settlements have been without admission of liability. The report, by consultant Alix Partners, included in a court filing on Monday gives the most detail to date on how much the family benefited from Purdue.

The company said in a statement that it is providing “this exceedingly rare level of transparency to help ensure that all claimants, including attorneys general and the communities they represent, can support the settlement structure that would transfer more than $10bn of value to the American public to address the opioid epidemic and save lives.”

The report shows the Sackler payments jumped beginning in 2008 – the year after Purdue agreed to pay a federal fine of $635m for misleading the public about OxyContin’s addiction risks.

Federal data made public earlier this year showed that OxyContin sales grew even after the fine. And the death toll from opioids, a class of drug that includes prescription painkillers as well as heroin and illicitly made fentanyl, rose, too, peaking in 2017.

The latest filing shows Sackler family members brought in far more money. In each year from 2008 to 2013, the distributions to the family – or tax payments on their behalf – totalled well over $1bn. The number went down to less than $800m in 2014 and 2015, $651m in 2016 and just over $200m in 2017.

The family, listed by Forbes magazine in 2013 as one the nation’s 20 wealthiest, has stopped taking distributions from Purdue.

The filing shows the company kept paying family legal bills until early this year. From 2016 until the end of February this year, the company paid $17.6m in Sackler legal bills, with nearly half that amount coming in 2019 as lawsuits mounted.

While Sackler family members remain the Stamford, Connecticut-based company’s owners, none are now on its board of directors.

More on this story

More on this story

  • Critics condemn New York prosecutor’s threat to close supervised drug sites

  • Oxford University cuts ties with Sackler family over links with opioids

  • Mexican president bemoans ‘rude’ US fentanyl pressure in plea to Xi Jinping

  • Patrick Radden Keefe on exposing the Sackler family’s links to the opioid crisis

  • J&J and distributors to pay $26bn to settle claims they fuelled US opioid crisis

  • Purdue Pharma owners willing to pay up to $6bn to settle opioid suits

  • V&A boss proud of funding from US family linked to opioid crisis

  • Sackler Trust halts new philanthropic giving due to opioid lawsuits

  • 'This is blood money': Tate shuns Sacklers – and others urged to follow

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