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Malden council opts into Purdue settlement and approves Sackler family release; one councilor objects
Summary
The City Council voted to participate in the national Purdue Pharma bankruptcy distribution and, by separate vote, to approve a release of the Sackler family under the governmental-entity settlement agreement; participation vote was unanimous, the release passed 9–1.
The Malden City Council voted to participate in the Commonwealth-led distribution under the Purdue Pharma bankruptcy plan and separately approved a release of the Sackler family under the Governmental Entity Settlement Agreement (GESA) recommended by the Massachusetts Attorney General.
The council first voted, unanimously, to approve city participation in the bankruptcy plan — a step the Attorney General’s office and statewide municipal coordinators have encouraged to enable Massachusetts to accept a larger pooled payment. Later the council voted 9–1 to approve a city release of the Sackler family under the terms of the GESA; Councilor O’Malley cast the lone no vote.
Assistant City Solicitor Zahir Sumi summarized the background: thousands of lawsuits have been filed against Purdue Pharma and related parties over prescription-opioid harms; previous settlement proposals were litigated through federal bankruptcy courts and the U.S. Supreme Court. Under the plan described to the council, the Sackler family is contributing roughly $6.5 billion overall to a national settlement trust and Purdue or its affiliates are contributing additional funds. The Massachusetts allocation will be split with about 60% directed to state-level uses and 40% distributed to municipalities; portions will be disbursed over multiple years (attorneys and administrators estimate an approximately ten-year distribution schedule). The exact Malden share will depend on the statewide allocation and participation levels of other municipalities.
City Controller Charles Ranaghan reviewed precedent settlements: distributor and pharmacy settlements already provide smaller annual payments to Malden tied to opioid-abatement uses; those payments are tracked and reported, and they are generally restricted for opioid prevention, treatment and related services. Ranaghan said most settlements have conditions that funds be used for abatement and recovery services and that municipalities typically account for them through the general fund or a special revenue account.
The council discussed legal and ethical dimensions, the size and timing of payments, and the tradeoff between pursuing individual litigation against wealthy defendants and accepting a guaranteed, administratively distributed recovery. City staff advised that the Attorney General’s office recommends municipal participation and urged that the council’s votes be recorded and transmitted by a September 14 administrative deadline for inclusion in the national master ballot process. Councilors asked staff to participate in the Attorney General’s webinar and to share documentation.
Councilors and the mayor’s office said the city would use funds for opioid-abatement services already underway, and staff noted prior investments in recovery coaching and local programming. The council’s action authorizes city participation in the bankruptcy plan and, separately, approval of the Sackler release as set out in the GESA.
