The U.S. Supreme Court, in a 5-4 decision Thursday, rejected a complicated settlement agreement between state and local governments and Purdue Pharma, the manufacturer of the addictive painkiller OxyContin that contributed significantly to the country’s deadly opioid crisis.
The deal, which was agreed to in 2021 but has since been mired in legal limbo, would have required Purdue’s owners, the Sackler family, to pay $6 billion over 18 years to victims, states and tribes.
The settlement was challenged by a division of the U.S. Justice Department because it would have shielded the family from any additional lawsuits.
Now, the many parties to the original agreement – including Maine – will have to go back to the table to negotiate.
“Purdue Pharma, managed by the Sackler Family, prioritized significant profit as they pushed highly-addictive opioids without regard for the crisis it was fueling,” Maine Attorney General Aaron Frey said in a written statement to the Press Herald. “While (Thursday’s) Supreme Court decision means we have more work to do, my office will continue to litigate to obtain resources from the Sacklers to save lives and fight the opioid epidemic.
“Make no mistake about our resolve: confronting the devastation of the opioid epidemic requires that we work to hold accountable those bad actors who are responsible for it, which includes the Sackler Family.”
So, what does this mean for Maine? Here’s what we know.
HOW MUCH WOULD MAINE HAVE RECEIVED FROM THE PURDUE SETTLEMENT?
Maine’s share of the settlement with Purdue Pharma is estimated at $20 million.
ARE THERE OTHER SETTLEMENTS RELATED TO THE OPIOID CRISIS?
Yes, the agreement with Purdue is one of nine separate settlements that have been negotiated over the last several years between the government and major drug manufacturers and distributors.
ARE THOSE AGREEMENTS IN LIMBO TOO?
No, the Supreme Court decision only affects the settlement with Purdue Pharma.
HOW MUCH MONEY IS MAINE RECEIVING FROM THOSE SETTLEMENTS?
Collectively, Maine is expected to receive an estimated $235 million over the next 18 years.
The biggest share – about $130 million – comes from the so-called “Big Three” prescription drug distributors, McKesson Corp., AmerisourceBergen and Cardinal Health, and pharmaceutical manufacturer Johnson & Johnson.
An additional $100 million, announced by Frey in March, will come to Maine from five additional settlements with manufacturers Teva and Allergan, and retailers CVS, Walgreens and Walmart.
The remaining $5-plus million is from a settlement with another manufacturer, Mallinckrodt.
WHO CONTROLS THE MONEY?
The state has put in place memorandums of understanding that stipulate where the money will go and who is responsible for distributing it.
Half is controlled by the 15-member Maine Recovery Council, which has been meeting regularly for more than a year and has begun awarding the first $9 million in funds.
Twenty percent is overseen by the attorney general’s office in a state fund.
The remaining 30% will go to “litigating subdivisions,” which are counties and municipalities across Maine – 39 in all.
Cumberland County, for instance, will receive approximately $230,000 annually for the next 18 years. The county’s public health department recently allocated $80,000 to fund a mobile health van to reach individuals at high risk of overdose.
The city of Portland also has received $750,000 so far but has yet to decide how to use it and is not expected to begin distributing those funds until the fall.
More information is available online at: maine.gov/ag/opioids/2023-opioid-settlements.html
HOW WILL THE MONEY BE SPENT?
According to the memos of understanding, all funds must be used for opioid abatement strategies. That includes prevention, harm reduction, treatment and recovery programs.
The Purdue settlement included provisions for families of overdose victims to receive compensation.
WHAT HAPPENS NEXT MONTH WITH THE PURDUE SETTLEMENT?
Although the Supreme Court rejected the original settlement, the parties will negotiate another deal to settle the Purdue case. But whether that agreement will be larger or smaller is uncertain and it could be many months or more before all parties can agree. A future agreement also is subject to court review.
Send questions/comments to the editors.
Modify your screen name
Join the Conversation
Please sign into your Press Herald account to participate in conversations below. If you do not have an account, you can register or subscribe. Questions? Please see our FAQs.