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'Blood money from our children': Activists slam Purdue Pharma's $270M settlement

The maker of OxyContin and the company's controlling family agreed Tuesday to pay a groundbreaking $270 million to Oklahoma to settle allegations they helped create the nation's deadly opioid crisis with their aggressive marketing of the powerful painkiller.

Purdue Pharma is accused by several states, including Massachusetts, of fraudulent marketing practices leading to countless opioid-related deaths --- essentially making billions off a highly addictive, deadly drug and understating the risks.

"The addiction crisis facing our state and nation is a clear and present danger, but we're doing something about it today," Oklahoma Attorney General Mike Hunter said.

In settling, the Stamford, Connecticut-based company denied any wrongdoing in connection with what Hunter called "this nightmarish epidemic" and "the worst public health crisis in our state and nation we've ever seen."

The deal comes two months before Oklahoma's 2017 lawsuit against Purdue Pharma and other drug companies was set to become the first one in the recent barrage of litigation to go to trial. The remaining defendants still face trial May 28.

Opioids, including heroin and prescription drugs such as OxyContin, were a factor in a record 48,000 deaths across the U.S. in 2017, according to the Centers for Disease Control and Prevention.

In a statement, Purdue Pharma said the money that will go toward addiction studies and treatment in Oklahoma will help people across the country. CEO Craig Landau said the company is committed to "help drive solutions to the opioid addiction crisis."

Plaintiffs' attorney Paul Hanly, who is not involved in the Oklahoma case but is representing scores of other governments, welcomed the deal, saying: "That suggests that Purdue is serious about trying to deal with the problem. Hopefully, this is the first of many."

But some activists were furious, saying they were denied the chance to hold Purdue Pharma fully accountable in public, in front of a jury.

Cheryl Juaire, whose 23-year-old son Corey died of an overdose in 2011, said she was devastated to hear about the settlement.

"The worst possible thing in your whole life is when you hold that child in your hand in your arms and you nurture them, and they die," Juaire said.

Jauire, who lives in Marlborough, Mass., had been organizing a group of hundreds of mothers to go to the first day of the trial and stand outside with photos of their dead children. She said a complete airing of the facts is the only way to fully hold Purdue to account.

A settlement is "a huge disservice to the tens of thousands of families here in the United States who buried a child," she said. "That's blood money from our children."

Purdue Pharma introduced OxyContin in the 1990s and marketed it hard to doctors, making tens of billions of dollars from the drug. But the company has been hit with lawsuits from state and local governments trying to hold it responsible for the scourge of addiction.

The lawsuits accuse the company of downplaying the addiction risks and pushing doctors to increase dosages even as the dangers became known.

Earlier this month, Purdue Pharma officials acknowledged that they are considering bankruptcy . But Oklahoma's attorney general said the company gave assurances it will not take such a step in the near term. And he said the settlement money is "bankruptcy proof" - that is, "it's not at risk in the event Purdue declares bankruptcy."

Purdue Pharma has settled other lawsuits over the years, and three executives pleaded guilty to criminal charges in 2007. But this is the first settlement to come out of the surge of litigation in the past few years that focuses largely on the company's more recent conduct.

The company hasn't released a statement about the settlement yet and it's unclear what will happen in Mass., but Juaire is hopeful Attorney General Maura Healey will fight for her and other parent's who have lost their children.

The Associated Press Contributed to this story.