ST. CROIX — The Virgin Islands government is slated to receive more than $1.58 million over the next 15 years from an opioid settlement with Purdue Pharma, which developed, marketed, and distributed the powerful prescription painkiller OxyContin introduced in 1996, according to an official with the Virgin Islands Department of Justice.
All 50 states as well as the District of Columbia and U.S. territories have approved a $7.4 billion settlement with Purdue Pharma over the company’s improper marketing of opioids, according to an NPR article by Brian Mann published today. The deal was filed with a federal bankruptcy court by Purdue Pharma officials in March after negotiations with state attorneys general and other stakeholders.
Attorney General Gordon Rhea said the payouts will be based on population, so the territory will receive a smaller amount than other jurisdictions due to its small size. He said, however, the territory will receive a portion of the settlement.
“We’re going to do well,” he said.
Assistant Attorney General Christopher Timmons, chief of the DOJ’s Civil Division, provided a breakdown of the funds the Virgin Islands will receive.
“Out of the total amount that will be paid over 15 years, the Virgin Islands will be receiving $1,586,934.33,” he said.
While the territory can expect payments over the next 15 years, Timmons said the initial payment to the territory will be for $251,973.01. He said the Virgin Islands would subsequently receive annual payments under $100,000. He said the initial payment should be made soon, adding that the payment schedule depends upon the final approval of the settlement by the federal bankruptcy court.
The Sackler family, who currently own Purdue Pharma, wanted to release liability and were not concerned about requiring restrictions on how the funds could be spent, Timmons said. Therefore, he said the territory would have flexibility when it comes to spending the money.
READ MORE: “Purdue Pharma, Sacklers reach new $7.4 billion opioid settlement”
