$7.4B Opioid Settlement USVI to Receive $1.6M

St. Croix Times Staff

USVI -  Virgin Islands Attorney General Gordon C. Rhea announced that all 55 Attorneys General, representing all eligible States and Territories, agreed to sign on to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The Sackler family has also informed the Attorneys General of its plan to proceed with the settlement, which would resolve litigation against Purdue and Sacklers for their role in the creating and worsening the opioid crisis across the country. Now that the State sign-on period has concluded, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.

“The opioid crisis has left a trail of pain and loss in its wake, including here in the Virgin Islands. The agreement marks a critical step in addressing it and bringing justice to those harmed,” said Attorney General Rhea. “It ensures that those responsible are no longer profiting from pain, and that critical resources are finally reaching the communities that need them most.”

Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis. The U.S. Virgin Islands is set to receive up to $1,586,934 from this settlement over the next 15 years, with an initial payment of $251,973.

Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion and Purdue will pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.

Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve resolution of legal claims by State and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days. 

The DOJ has participated in settlements with other jurisdictions that have allotted $5,187,299 to the VI to fight opioid abuse under certain conditions.