Sackler Net Worth: Who is the Richest Sackler?
Sackler Net Worth: Purdue Pharma’s owners and successors, the Sackler family, continue to generate vast riches from the business.
The three Sackler brothers started Purdue Pharma in 1952, and the company has been embroiled in a lengthy legal struggle over allegations that it misrepresented the risks of addiction to its best-selling opioid, OxyContin.
The Opioid Settlement Affected the Sackler Net Worth
The Sackler family’s wealth has drastically decreased as a result of a new settlement agreement reached in the opioid case.
The Sackler family has agreed to pay a $6 billion settlement and relinquish their control of Purdue Pharma. Following the terms of this settlement, the business “will be freed from any future [civil] claims involving opioids,” as reported by AP News. Although no charges appear to be imminent, the Sacklers will not be granted immunity from prosecution.
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According to Forbes, the remaining 40 Sackler family members had a combined net worth of $13 billion in 2016. This placed them as the 19th wealthiest family in the world. Litigation and resulting fines have changed the total amount since then. Bloomberg reported in September of 2021 that the Sackler family’s fortune had shrunk to roughly $11 billion.
Members of the Sackler family reportedly wrote letters to the U.S. House Oversight Committee in March 2021, disclosing that family members on the board had assets of only around $1.1 billion.
The Sackler family’s net wealth might fall to $5 billion or less if the $11 billion figure above is accurate and the family pays out the $6 billion it agreed to as part of the recent settlement.
The settlement provides for “victims to have a forum in court, by video conference,” on March 9, 2022, in addition to the $6 billion paid to avoid further civil litigation. According to AP News, this will finally offer victims and their families a chance to speak directly to members of the Sackler family.
How Much Money Did Purdue Pharma Spend on Lawsuit Settlements?
After three officials from Purdue Pharma, both current and former, pled guilty to criminal charges in 2007, the company settled the lawsuit. To settle allegations that it had misled doctors, patients, and regulators about the addictive risks of OxyContin, Purdue Pharma’s parent company agreed to pay $600 million in fines.
Also, three people admitted to misbranding the medicine and paid a total of $34.5 million in fines. The makers of OxyContin, a potent painkiller, formerly said their drug was safer for users because it was less likely to lead to dependency or abuse.
The corporation admitted admission to felony OxyContin marketing allegations in 2020. The settlement assessed $8.3 billion in penalties on Purdue Pharma and $225 million against the Sackler family as civil penalties.
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In a Bankruptcy Filing, Purdue Pharma Claimed Financial Hardship
The federal bankruptcy court in White Plains, New York, reportedly approved Purdue Pharma’s proposed $10 billion bankruptcy escape plan on September 2, 2021.
“a compensation fund that will pay certain victims of drug addiction a projected $3,500 to $48,000 each,” The Guardian writes. Included in that total are the $4.5 billion that the Sackler family has agreed to pay out over the next decade.
Nearly half of all state attorneys general spoke out against the concept when it was first announced. In their view, the Sackler family should be held accountable for the deaths of approximately 450,000 Americans caused by the opioid epidemic that began in 1999 and continued through 2018.
Maura Healey, the attorney general of Massachusetts, was a vocal opponent of the proposal. ‘What the Sacklers are giving is a manner for the payments to be arranged that makes it comfortable for them,’ she reportedly told NPR.
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The attorney general of twenty-four different states has issued a united statement demanding that the Sackler family and Purdue Pharma provide more immediate relief to affected areas.
The Sackler family will also be required to relinquish their stake in the company as part of the terms of the settlement.
According to The Guardian, the drug manufacturer will be restructured into a new firm named Knoa Pharma with a board nominated by public leaders, and the proceeds would be invested in government-led initiatives to combat opioid addiction.
AP News says that after the Sackler family emerges from bankruptcy, it will begin providing payments to satisfy the $6 billion settlement.
Is There Stock Available at Purdue Pharma?
There is no publicly traded stock in Purdue Pharma because the company is privately held.