Penalty Amount
$7,400,000,000
Texas Attorney General Ken Paxton announced the effective date of a $7.4 billion settlement with Purdue Pharma, Inc. and the Sackler family over their role in fueling the opioid crisis. Texas will receive $286.5 million from the settlement, bringing the state’s total opioid recovery funds to over $3 billion. The settlement includes permanent bans on Sackler opioid sales in the U.S., public release of 30 million company documents, and distribution of funds for addiction treatment and prevention over 15 years.
The $7.4 billion settlement requires Purdue and the Sacklers to pay out funds over several years, with Texas receiving $286.5 million. The Sackler family is permanently barred from selling opioids in the United States. Purdue’s manufacturing operations are transferred to Knoa Pharma LLC, which is prohibited from marketing opioids and overseen by an independent monitor to prevent prescription opioid diversion. Over 30 million documents related to Purdue’s opioid business will be made public, and settlement funds will be distributed to states, communities, and individual victims over 15 years for addiction treatment, prevention, and recovery programs.
This enforcement action pertains to opioid manufacturing and marketing violations, with no privacy or data protection components. As such, there are no privacy-related contract clauses (e.g., data processing, breach notification, consent) that require review based on this action. In-house teams should instead refer to opioid-related regulations for relevant contract reviews, which are outside the scope of this privacy-focused extraction.
Entity
Purdue Pharma, Inc. and the Sackler Family
Industry
Healthcare"Purdue Pharma, Inc. (“Purdue”) and its owners, the Sackler family"
"a $7.4 billion settlement with Purdue Pharma, Inc. (“Purdue”) and its owners, the Sackler family"
"Texas is expected to receive $286.5 million from the settlement"
"settlement"
"Attorney General Ken Paxton"
"coalition of 55 states and territories"
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.
Texas Attorney General Ken Paxton announced an agreement with Plum Organics requiring stronger testing and limits for heavy metals in covered baby food products, along with publicly accessible testing results. The release does not state a monetary penalty; the agreement follows an ongoing investigation into baby food manufacturers.
Texas Attorney General Ken Paxton opened an investigation into Blue Cross and Blue Shield of Texas, its parent Health Care Service Corporation, and related entities over alleged denials or delays of urgent and medically necessary care and potentially burdensome prior authorization requirements. The investigation is ongoing; the Attorney General issued a Civil Investigative Demand to obtain information and assess potential violations of Texas law.
Texas Attorney General Ken Paxton issued a consumer alert warning Texas businesses and nonprofits about a surge of demand letters alleging California Invasion of Privacy Act (CIPA) violations based on common website technologies such as cookies, pixels, and analytics tools. The AG cautions that some letters may exaggerate or misrepresent violations and may be fraudulent, noting serial CIPA plaintiff Vivek Shah has been declared a vexatious litigant. Recipients are advised not to pay or respond directly, to consult privacy counsel, and to report suspected fraud to the Consumer Protection Division.
A Texas state district court (Judge Cory Liu) has found TikTok liable for lying to parents about the safety of its platform and for exposing children to inappropriate and explicit content, making Texas the first state in the nation to hold TikTok liable on these claims. The court found that although TikTok claimed it would remove graphic videos depicting drugs, nudity, alcohol, injuries, and profanity, such videos remained accessible to minors, even under 'Restricted Mode.' No penalty has been imposed yet; Attorney General Paxton will proceed to trial, expected next month, where relief and penalties will be determined.
Texas Attorney General Ken Paxton opened an investigation into TriWest Healthcare Alliance Corp., the U.S. government contractor that administers the VA Community Care Network and the Defense Health Agency's TRICARE West Region, over reports that it wrongfully denied health care claims by falsely treating insureds as having other health insurance (OHI). The OAG has issued Civil Investigative Demands (CIDs) and plans to interview consumers and employees to determine whether TriWest violated the Texas Deceptive Trade Practices Act. No findings or penalties have been imposed yet.