New Opioid Settlement Doubles Payout To Rhode Island

PROVIDENCE, RI — Rhode Island reached a multi-state a multi-billion dollar settlement with Purdue Pharma and the Sackler family for their role in the opioid epidemic, Attorney General Peter Neronha announced Thursday. The state is set to receive $45 million in the settlement, more than double that of the original plan.

Under the new agreement, the Sackler family will pay at least $5.5 billion, up from the $4.3 billion in the original settlement plan. The family will also issue a "statement of regret for their role in the opioid epidemic," Neronha said, and will allow institutions to remove the family's name from scholarships and buildings.

"As I have said before, there is no amount of money that will be enough to undo or compensate Rhode Islanders for the harms perpetrated by Purdue and the Sacklers," Neronha said. "I objected to the [initial] bankruptcy plan because, in my view, the plan didn’t provide justice or accountability, and didn’t provide adequate resources for treatment and recovery."

Rhode Island would have received about $20 million under the original settlement plan. The new plan more than doubles that. All funding will be used to pay for opioid treatment and prevention, with some going directly to cities and towns.

The new settlement keeps certain provisions of the original, including the requirement that the company be sold or dissolved by 2024 and the ban of the Sacklers from the opioid business. The Sacklers will also be required to make millions of private documents public.

Rhode Island was part of the negotiation process, which has been underway through court-ordered mediation since Jan. 3.

"I fought hard for the principle that third-party releases for the Sacklers, who aren’t bankrupt and yet want the benefits and protections of the bankruptcy process, are unlawful, and we won," Neronha said. "Today’s settlement represents a significant, meaningful increase, nearly 25 percent, in the amount of money the Sacklers must pay. This settlement also lays bare the dangers of third-party releases in the bankruptcy context – the Sacklers were almost allowed to get away with leaving more than a billion dollars on the table."