Mahoning Valley & U.S. - Purdue Pharma and the Sackler family are agreeing to a $7.4 billion settlement over claims about the company's role in the opioid epidemic.

Unlike the settlement that was thrown out last year, it does not shield the company, or Sackler family, from personal lawsuits.

“In the prior settlement, individual claims had to be given up. People couldn’t pursue their own actions or even some civil class action lawsuit against Purdue Pharma or the Sackler family,” said Matt Mangino, attorney.

In fact, $850 million from the settlement is for personal claims. But for those filing through the bankruptcy action, there is a cap on how much each person can receive.

“$3,500 is not a lot of money when you look at the overall picture. So, if you were to file your own civil suit, there would be no cap. You know, a jury could look at this, they could award significant damages. They could punitive damages,” said Mangino.

The money put aside for personal claims in the settlement does not close the door for other lawsuits. Mangino said while people can pursue their own claims, it's more likely there will be a class action lawsuit.

This is because the cost of an individual suit is often more expensive. 

“The cost of litigating a case against Purdue Pharma itself would, maybe, beyond the means of individual families who have suffered as a result of oxycontin abuse,” said Mangino.

Mangino said people could also pursue legal action against members of the Sackler family, but it would be costly and more difficult to prove.

“They have potential, personal liability. It’s going to be more difficult to prove that individual liability of family members as opposed to the Purdue Pharma company, although it was a privately owned company,” said Mangino.

When asked about the settlement, Purdue Pharma sent the following statement to 21 News:

“Today’s announcement of unanimous support among the states and territories is a critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis, and deliver opioid use disorder and overdose rescue medicines that will save American lives. We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved.”


Pennsylvania is expected to receive up to $200 million from the lawsuit, and Ohio is expected to receive up to $198 million.

The money would assist communities in addressing the impact of the opioid crisis.

A federal bankruptcy judge still needs to approve the settlement.