Purdue Pharma Settles With US Justice on Criminal Case for $5B; Sackler Family $7.4B Settlement Still Proceeding

Purdue Pharma Settles With US Justice on Criminal Case for $5B; Sackler Family $7.4B Settlement Still Proceeding

There have been two major ongoing cases relating to the Sackler family and their company, Purdue Pharma. One was resolved on Tuesday.

Opioid manufacturer Purdue Pharma LP (Purdue) was sentenced Tuesday in federal court in Newark, New Jersey, and ordered to pay criminal penalties of over $5 billion for its role in fueling the opioid epidemic.

“Purdue Pharma put profits over patient health and safety,” said Acting Attorney General Todd Blanche. “The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs. Their actions contributed to the opioid crisis that claimed countless lives and destroyed entire families and communities. Today's sentence is a prime example of the Department’s effort to redress past wrongs by rooting out and punishing unlawful conduct by companies that have contributed to the national crisis.”  

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The pharmaceutical company has been accused of fueling the opioid epidemic.

The sentencing on Tuesday comes years after Purdue Pharma pleaded guilty to three federal criminal charges related to the marketing and distribution of its powerful opioid painkiller.  As a part of Tuesday’s actions, U.S. District Judge Madeline Cox Arelo  sentenced OxyContin maker Purdue Pharma to pay the federal government $225 million of the $5 billion legal battle, ending the government’s criminal case.

Purdue Pharma was owned by the Sackler family. The family made tens of billions from the sale of opioids — the epidemic they fueled led to the death of nearly 800,000 Americans.

 

Rhode Island Ties

A series of stories by GoLocal in 2025 unveiled deep family ties between Rhode Island Democratic gubernatorial candidate Helena Foulkes and the Sacker family.  The Sacklers funded the Dodd Center at the University of Connecticut — named for Foulkes’ uncle and grandfather. She chaired the board throughout the opioid crisis and served on the board, which included members of the Sackler family and a Purdue Pharma lobbyist.

That lobbyist, Stephen Kinney, has for decades been a close associate of Foulkes’ family and its political advisor. He is also a donor to Foulkes’ political campaigns.

Foulkes chaired the board until 2022.

 

Foulkes Was President at CVS; the DOJ Lawsuit Is Still Pending

CVS is being sued by the Justice Department for its role in the opioid crisis. Foulkes was president of CVS for a number of years during which top law enforcement officials voiced disgust with the CVS corporate strategy.

“Simply put, they put profits over their obligation to keep their customers safe,” said Drug Enforcement Agency Administrator Anne Milgram on Wednesday. “A pharmacy is the final step in the pharmaceutical distribution process that is in place to keep customers safe. In the fight against the opioid epidemic, DEA will continue to be relentless in holding those accountable who violate our drug laws and place our communities in danger whether they are a criminal cartel or large pharmacy chain.”

 

 

Impact of the Opioid Crisis

In announcing the $5 billion action against Purdue Pharma, Justice was explicit about the impact of the epidemic and Purdue Pharma's role.

“This generational case against Purdue Pharmaceuticals is one of the most important corporate enforcement cases ever brought by the Department of Justice,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The opioid epidemic was and continues to be a national tragedy that has destroyed far too many lives, families, and communities. Purdue callously focused on profits when it knew that providers were prescribing these addictive opioids to patients without a legitimate medical purpose. While good progress has been made in combating the national opioid crisis, today’s sentencing is a reminder that there is much additional work to be done. Companies like Purdue that place illicit profits over the obligation to be a good and honest corporate citizen will be investigated and prosecuted. Today’s sentencing reflects Purdue’s role in fueling the opioid crisis and concludes the Department’s efforts to hold Purdue accountable for diversion of its products. The Criminal Division remains steadfast in our mission to seek justice on behalf of the American people.”

 

Sackler Family Settlement

A separate judge approved the opioid-maker’s $7.4 billion settlement plan in November 2025 as part of bankruptcy proceedings that will dissolve the company and distribute billions of dollars to communities, local governments, and individuals affected by the opioid epidemic.  The final details of that case are still proceeding.