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Apopka to receive funds from Purdue Pharma opioid settlement plan

The City is set to benefit from a national $8 billion payout tied to Purdue Pharma’s bankruptcy, though the exact amount and court approval remain uncertain

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The City of Apopka agreed to be a part of the Purdue Pharma bankruptcy settlement plan, which provides over $8 billion through a 15-year payout to resolve opioid-related claims. By accepting the plan, the city will release all claims against Purdue and the Sackler family in exchange for receiving an allocated share of the settlement funds. The exact amount for Apopka is unknown, but is estimated to be in the six to seven-figure range, potentially.

Related: Five surprising opioid use disorder statistics.

City Attorney Cliff Shepard outlined Purdue’s National Opioid Settlement during the September 17 council meeting, noting it could result in a potential distribution to Apopka.

The money is not fully guaranteed. The settlement depends on the bankruptcy plan being approved by the court in November. If enough participants vote against the plan or if the court does not approve it, the settlement could fall apart. 

The final amount each subdivision receives will depend on the number of entities ultimately participating in the settlement. While the current plan proposes $8 billion, the actual payout to Apopka could vary based on the number of claims filed and approved.

Purdue Pharma was a privately held pharmaceutical company most closely associated with the powerful prescription opioid OxyContin, a drug it released in 1996. 

The Sackler family owned Purdue, which became one of the wealthiest families in the United States, primarily because of the profits generated from opioid sales. Purdue aggressively marketed OxyContin as a groundbreaking painkiller, claiming that its time-release formula made it less addictive than other opioids already on the market. 

However, these claims were misleading. In reality, patients could still experience intense euphoric effects if the pills were crushed or otherwise misused, and even when taken as prescribed, OxyContin had a high potential for dependency.

To expand sales, Purdue Pharma launched a highly controversial marketing campaign that downplayed the risk of addiction while exaggerating the benefits of the drug. 

Purdue also organized continuing medical education courses, often funded by the company, to persuade healthcare providers that OxyContin was a safe and effective treatment for chronic pain. Despite growing evidence of misuse, sales representatives were given bonuses and incentives to encourage doctors to prescribe higher doses for longer periods of time. 

This strategy proved incredibly lucrative: OxyContin generated tens of billions of dollars in revenue, making it one of the most profitable drugs of its time.

The widespread promotion and overprescription of OxyContin directly fueled the opioid epidemic in the United States. By the early 2000s, communities across the country were experiencing rising rates of opioid misuse, addiction, and overdose deaths. 

OxyContin became a gateway drug for many, with patients transitioning from prescription opioids to cheaper and more accessible alternatives like heroin and fentanyl. Public health experts have since traced a significant portion of the opioid crisis back to Purdue’s marketing strategies and misleading claims.

As the epidemic worsened, Purdue Pharma faced thousands of lawsuits filed by state governments and individuals who accused the company of deceptive practices and negligence. 

In 2007, Purdue and three top executives pleaded guilty to federal charges of misbranding OxyContin and paid over $600 million in fines. This was one of the largest pharmaceutical settlements in U.S. history at the time, yet the company continued to market opioids aggressively. 

In subsequent years, the lawsuits mounted, highlighting the immense social and financial toll of the epidemic, including billions of dollars in healthcare costs, lost productivity, and community devastation.

By 2019, facing overwhelming legal pressure, Purdue Pharma filed for bankruptcy as part of an effort to settle the thousands of lawsuits against it. The Sackler family agreed to contribute billions of dollars to settlements, though critics argued that the amount was far less than the profits they had gained and that the family avoided taking full accountability. Purdue’s bankruptcy proceedings included plans to restructure the company into a public trust dedicated to addressing the opioid crisis, but these plans were met with fierce debate.

Purdue Pharma dissolved in 2021 following court rulings. 

According to the Centers for Disease Control and Prevention (CDC), nearly 247,000 Americans died from prescription opioid overdoses between 1999 and 2019, with OxyContin playing a central role in the early waves of the crisis. By 2021, the overall opioid crisis had claimed the lives of more than 500,000 people in the U.S. since the late 1990s.

No members of the Sackler family have gone to jail in connection with the opioid crisis.

Apopka, Purdue Pharma, Sackler family, opioid crisis, OxyContin, opioid settlement, bankruptcy plan, National Opioid Settlement, Cliff Shephard, opioid epidemic, Florida municipalities, opioid payouts

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