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Top 10 Most Expensive Legal Settlements in History

Published:
21 Aug 2023
News

Wenee Yap

Legal Features Writer for the College of Law
Top 10 Most Expensive Legal Settlements in History

Billion-dollar companies who fall foul of the law, or billionaires who fall foul of a spouse, can result in stratospheric legal settlements. In the case of class actions, financial payouts can be a major way to provide recompense and right wrongs.  

We investigate some of the world’s most expensive legal settlements, the circumstances surrounding them, and of course, how much they paid out!  

Here is our top 10 list of the most expensive settlements in history… costly class actions, pharmaceutical payouts and extravagant divorces.  

 

Class Actions 

1. Big Tobacco’s Master Settlement Agreement | $206B 

Here is a class action to send chills down the spine of any vaping company. After years of disputes and lawsuits, Big Tobacco had its day of reckoning. A class action was brought against all major tobacco companies across more than 40 US states. Leading the charge was Mike Moore, Attorney General of Mississippi. Moore argued that his state should not be liable for the costs of smoking-related disease. It was an argument that had long failed, with tobacco companies successfully asserting that smokers had ‘chosen to smoke’, foiling lawsuits brought by smokers and their families.

This landmark case resulted in a USD206B settlement, the largest civil litigation settlement in US history. Under the terms of the settlement agreed upon in 1998, the tobacco industry was required to part with billions over 25 years. The funds were assigned towards smoking-related projects. 

2. BP's Deepwater Horizon oil spill | $18.7B 

Oil spills can spell the end of an ecosystem. BP’s disastrous Deepwater Horizon spill was one of the worst. In April 2010, gas leaked into an oil well during drilling operations, causing a catastrophic oil rig explosion that killed 11 crew members.  

Five million barrels of oil cloaked the Gulf of Mexico over the next 87 days, impacting marine life and the communities that depended on the Gulf. BP was hit with litigation that continues until this day. To date, this has resulted in settlements totalling more than USD18.7B. 

3. The VW emission scandal (aka Dieselgate) | $14.7B 

This was greenwashing on an industrial scale. Volkswagen’s explosive revelation in September 2015 that it had falsely claimed its diesel-fuelled vehicles met environmentally friendly standards sparked global outrage and litigation. A San Francisco judge awarded a $14.7B settlement between the embattled auto manufacturer and owners of almost half a million VWs. Litigation continues in other jurisdictions, including the UK, so it’s likely this falsehood will cost VW dearly for years to come. It is estimated that the scandal has cost VW over $21B to date. 

4. Dutch Fortis Bank settlement | $1.3B 

Europe delivered a sizeable settlement following the breakup and dissolution of Benelux-centred financial services company Fortis. Imperilled by the global financial crisis, Fortis was forced to make a decision that adversely impacted its shareholders.  

Subsequent litigation was complex and time consuming. A decade after the GFC, the Amsterdam Court of Appeal approved a EUR1.3B group action settlement on behalf of Fortis shareholders. The settlement was a victory for shareholder litigation and was one of the biggest in Europe. 

 

Pharmaceutical Settlements 

5. Cardinal Health, McKesson, AmerisourceBergen, Johnson & Johnson | $26B 

The opioid epidemic that swept the US has been the focus of significant litigation. In early 2022, this culminated in a landmark settlement with the three largest U.S. drug distributors, and pharmaceutical producer Johnson & Johnson. The settlement, worth $26B, aimed to resolve around 3000 lawsuits filed by state and local governments. One of the main issues was that medical practitioners were prescribing opioids when patients did not require such treatment, leading to sustained and serious addiction, as well as death. 
 
"Because of the money, there will be people alive next year who otherwise would have died," North Carolina Attorney General Josh Stein, a lead settlement negotiator, told Reuters. 

6. Purdue Pharma | $8.344B  

Staying with the opioid crisis, Purdue Pharma was involved in a scandal so significant, it was dramatised in the streaming series, Dopesick. Michael Keaton played a doctor who was misled by Purdue Pharma’s marketing to prescribe opioids - leading, in turn, to his own addiction. Purdue Pharma’s opioids included OxyContin, Butrans and Hysingla, and resulted in Purdue pleading guilty to fraud and kickback conspiracies. 

Under the late 2020 plea agreement, Purdue Pharma was liable for the largest penalties ever levied against a pharmaceutical manufacturer. This included a criminal fine of USD3.544B, USD2B in criminal forfeiture and USD2.8B in civil liabilities. 

Purdue admitted that it marketed and sold its dangerous opioid products to healthcare providers, even though it had reason to believe those providers were diverting them to abusers,” Rachael Honig, First Assistant U.S. Attorney for the District of New Jersey, said in a Justice Department statement. “The company lied to the Drug Enforcement Administration about steps it had taken to prevent such diversion, fraudulently increasing the amount of its products it was permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of its products.” 

7. GlaxoSmithKline | $3B 

Before the age of opioids, pharmaceutical companies were well-versed in the playbook of over-prescribing prescription drugs. Back in 2012, GlaxoSmithKline pleaded guilty to failing to disclose safety information in its unlawful promotion of prescription drugs. This included off-label promotion, kickbacks to medical physicians for prescriptions, deceptive marketing, misbranding, and falsifying drug prices to underpay rebates. This resulted in a settlement of $3B, across criminal fines, civil liabilities, and forfeiture.  

 

Divorces 

8. Bill & Melinda Gates | $6B+ 

Bill and Melinda Gates were long renowned as a philanthropic power couple, funnelling their fortune into fighting malaria, and aiding other causes throughout the world. Their impact was significant and for decades Bill Gates has reigned supreme on the list of richest people. Bill and Melinda’s marriage lasted 27 years with their separation announced via Twitter on May 2021. A current estimate (8/8/23) by Forbes of Bill Gates’ fortune sits at USD117.5B.  

When power couples consciously uncouple, divorce settlements can be astronomical. While the final figure was never officially disclosed in court documents, reports suggest that Melinda Gates gained more than $6B in stocks alone. 

9. Jeff Bezos & MacKenzie Scott | $38.3B 

When tech titans divorce, divorce lawyers rejoice. This is at least the case in the United States, when the fortunes of the world’s richest entrepreneurs are at stake. When Amazon founder Jeff Bezos parted ways with MacKenzie Scott, he also parted with USD38.3B in Amazon stock at the time of settlement. Married for 25 years, MacKenzie filed for divorce in September 2022, the couple shared four children. While these settlement figures dwarf the GDP output of many nations, the payout far from bankrupted Bezos, whose net worth is estimated by Forbes to be USD162.5B as at the 8/8/23.  

10. Rupert Murdoch & Anna Maria Mann | $1.7B assets + $110M cash 

Not all wealth comes from tech, as media magnate Rupert Murdoch knows all too well. Having made his fortune growing NewsCorp globally, Rupert Murdoch is a divisive public figure. Known as Kingmaker in some circles, Murdoch’s ability to influence voting populations has made him as much maligned as he is celebrated. A four-time divorcee, Murdoch might equally be regarded as an expert in extravagant divorces. However, it was his divorce to his second wife, Anna Maria Mann, that made headlines in 1999. Married for 31 years, the union was Murdoch’s longest-lasting, and together, they share three children.  

When Murdoch pulled the plug, he is reported to have parted with $1.7B in assets including $110M in cash. Wasting no time, he married his now third ex-wife, Wendi Deng, just 17 days after his divorce. 

 

Not all disputes end so expensively, but when they do, the settlements make headlines. Whether you work in class action litigation or family law, these are the cases that can make a career and cement formidable reputations.

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Overcoming procrastination is quite simple: passion. There must be an internal desire, not dependent on anything except ourselves. That’s why we enable our learners to choose the courses and practice areas that matter most to them - from family law to advocacy - we’re helping lawyers reclaim their power and focus on the areas that they are passionate about.

Property Law Update: Off-the-plan Property Contracts

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Property Law Update: Off-the-plan Property Contracts

The law concerning off-the-plan purchases can be complex. However, as buyers seek affordable entry points into the property market, this kind of purchase has become more and more common. To help demystify this area of law, we spoke to property lawyer Jane Macdonnell, who is a College of Law lecturer in our popular LLM program. 

Defining success in life and law

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Defining success in life and law

What does it mean to be successful? Her Honour Magistrate Michelle Harries, former Assistant Director and lecturer at the College of Law WA, shares her insights at the PLT Excellence Awards Evening. The following is an extract from Her Honour’s speech.

What’s so special about specialising? The ins and outs of becoming a specialist lawyer

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What’s so special about specialising? The ins and outs of becoming a specialist lawyer

Becoming a specialist can be a smart career move. It’s a pathway to new knowledge, opportunities and challenges. But it’s also a commitment. So is specialising the right move for you? Learn the ins, outs, and must-knows of specialising – and what you need to know before you take the leap.

Dress for success: How clothes impact your performance and power

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Dress for success: How clothes impact your performance and power

What you wear has been proven to impact how you feel and perform, it has also been shown to influence how others perceive and respond to you. Given these findings what you wear to the office, a client meeting, to court, or even a job interview, matters. Experienced style expert and author, Dijanna Mulhearn, provides her expert tips on how lawyers can take their look and feel to the next level and dress for success at work.

Your Guide to a Career in Legal Operations

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Your Guide to a Career in Legal Operations

In Australia, the legal profession is evolving rapidly, driven by technological advancements and complex demands from clients and employers. Legal operations professionals, not necessarily with legal backgrounds, are pivotal in integrating new technologies, project management, and process improvements to meet modern market needs.

Nationally Accredited Mediator Training Course Guide

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Nationally Accredited Mediator Training Course Guide

Download our Nationally Accredited Mediator Training handbook, if you are considering adding mediation to your skill set. Inside you'll find everything you need to know about the course.

Vale Kay Smith

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Vale Kay Smith

On Monday 15 August 2016, Kay Smith, one of The College of Law’s longest serving and most respected people died after a short illness.

Kay’s legal career began when she gained her qualification in Law through the NSW Legal Practitioners Admission Board. Kay then obtained a position as an articled clerk with a city firm at a time when there were very few openings for women in the legal profession. She was admitted as a solicitor and established a legal career. She moved from private practice to the College of Law in 1983 – the start of a 30 year career at the College.

Dispute Resolution Postgraduate Programs Course Guide

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Dispute Resolution Postgraduate Programs Course Guide

Download the Dispute Resolution Postgraduate Course Guide to learn how our program can equip you with essential skills to resolve conflicts effectively and build a rewarding career in this growing field.

Graduate Certificate in International Arbitration Practice Course Guide

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Graduate Certificate in International Arbitration Practice Course Guide

Download the Graduate Certificate in International Arbitration Practice Course Guide and unlock the skills needed to navigate complex, cross-border legal disputes with confidence and efficiency.

Property Law Postgraduate Programs Course Guide

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Property Law Postgraduate Programs Course Guide

Download the Property Law Postgraduate Course Guide and discover how our specialised program can help you build expertise and thrive in this dynamic field.

Graduate Certificate in Applied Law Guide

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Graduate Certificate in Applied Law Guide

Looking to boost your legal career but not ready to dive into a Master of Laws (LLM)?
 
The Graduate Certificate in Applied Law might be the answer.
 
Offering a flexible and affordable way to upskill, the Graduate Certificate is a popular option for busy legal professionals looking to sharpen their skills or master a particular field.
 
Download this course guide to receive more information. 
What are the top negligence claims facing lawyers today?

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What are the top negligence claims facing lawyers today?

The College of Law investigates which legal practice areas are most at risk of negligence claims and why. We spoke to Lawcover’s Legal Risk Manager Glenda Carry about the practice areas most affected by negligence claims, what behaviours can lead to adverse claims by clients, and what risk mitigation strategies law practices can put in place.

From LLB to Parliament – Australia’s Politicians-Turned-Lawyers

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From LLB to Parliament – Australia’s Politicians-Turned-Lawyers

Australia’s recent change in leadership has set the nation’s eyes on Malcolm Turnbull. Over the coming weeks and months, the newly appointed 29th Prime Minister will reveal his mettle as a national leader.

From ballroom dancing to the law: Meet PLT alum Helena Angela Hanna

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From ballroom dancing to the law: Meet PLT alum Helena Angela Hanna

While completing her law degree and Practical Legal Training with the College of Law, Helena Hanna also kept up with her interests outside of studies. Learn more about Helena and her law degree experience.

How to merge your love of music with your legal career: Chelsea's story

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How to merge your love of music with your legal career: Chelsea's story

Learn how Chelsea Donoghue merged her lot of arts and law: How she managed her study while on world tours, what she loves most about her work at Sanicki Lawyers, and what’s next.

Graduates and prize winners recognised in June ceremony

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Graduates and prize winners recognised in June ceremony

Graduates and prize winners celebrated their achievements, received their awards and honours remotely due to continuing COVID-19 restrictions.

3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

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3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

Parting ways in a relationship is never easy, and family lawyers are generally the first professional separating couples encounter when they end a relationship. For all of these reasons Angela Harbinson created The Separation Guide, which aims to make separation and divorce simpler, more manageable and less stressful.

Kyiesha Faulkner: How the Indigenous Business Handbook is transforming lives

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Kyiesha Faulkner: How the Indigenous Business Handbook is transforming lives

Starting a business is never easy. What step should you take first? How do you negotiate the ins and outs of your legal requirements if you’re not a lawyer? Even for a seasoned lawyer these steps are complicated…And what if you also face unique cultural considerations and complexities?

Self-awareness: The surprising foundation to a thriving legal career

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Self-awareness: The surprising foundation to a thriving legal career

There’s no doubt the legal sector can be an intense work environment. Thanks to heavy caseloads and fierce competition, lawyers and other legal professionals are facing stress, anxiety and burnout on a concerning scale. But according to executive transition coach and CEO at Lucent Global, Ellie Scarf, it doesn’t have to be this way. There’s one tool that can help you manage a plethora of professional challenges. That tool? Self-awareness.

5 tips on how to avoid common ethical breaches for lawyers with Athol Opas

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5 tips on how to avoid common ethical breaches for lawyers with Athol Opas

The law is a complex field heavily reliant on knowledge, interpretation and advice. This makes for a profession that can have far reaching consequences and, as a result, lawyers are held to high standards. Athol Opas presents annual ethics updates to firms to keep them abreast of recent cases of misconduct and/or common ethical breaches. We spoke to Athol to find out about the most common ethical breaches lawyers should be mindful of and to gain his top tips on complying within ethical obligations. 

How AI is being used in Family Law

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How AI is being used in Family Law

To understand where legal AI use cases are showing up within family law, the College spoke with two highly experienced practitioners who have incorporated AI into their legal practice in different ways. Fiona Kirkman, principal at Kirkman Family Law, embraced ChatGPT early on in her practice, while Jenna Downy, solicitor at Family Law Matters, helped train LawY, an AI legal research assistant.

How to exit your job gracefully in law

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How to exit your job gracefully in law

For the 1 in 4 Australian lawyers considering leaving their job, the current job market is tipped in their favour. However, Australia’s legal profession is tight-knit and relatively small, so reputation matters. If you are leaving your role for fresh challenges, here are our top tips on how to exit your job gracefully in law, from the College of Law’s National Careers Advisors Ruth Beran and Susan Pincus.

Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

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Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

Kerala Drew found the path to qualifying as an Australian lawyer fraught with roadblocks. Learn how she landed her first job in law, what set her College of Law PLT experience apart from prior study, and what advice she might have for lawyers looking to join the Australian legal profession.

How to get a government job in law: everything you need to know

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How to get a government job in law: everything you need to know

Embarking on a legal career in local, state, or federal government can be an exciting move. There are many pathways for development, a broad range of practice areas, and often a healthy work-life balance. These roles are highly rewarding, and highly competitive, the College of Law tells you everything you need to know about landing a government job in law.

The legal ramifications of the Queen’s death are surprisingly small

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The legal ramifications of the Queen’s death are surprisingly small

We talk to the College of Law’s Adrian Deans, Academic Policy & Quality, James Crittenden, Head of Short Courses and CPD, and Lewis Patrick, Chief Academic Officer, about some of the pragmatic impacts of the Queen’s passing on the law and Australian legal profession.

When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

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When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

Ankurpreet Singh was thrust into a costly commercial conflict, which made him determine to pursue a legal career. To make his dream a reality, he enrolled in the College of Law’s LPMC – where he bolstered his business competence and confidence.

How to get into Wills & Estates with Rick Christie

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How to get into Wills & Estates with Rick Christie

Rick Christie, owner of ChristieLaw and committee member of STEP NSW, had always been attracted to the personal side of wills and estates. Insights spoke to Rick about how he came to specialise in wills and estates, what advice he might have for lawyers looking to move into the area, and what role industry organisation STEP can play for lawyers keen to become specialists.

Navigating Age Discrimination In The Law With Tile Imo

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Navigating Age Discrimination In The Law With Tile Imo

Bias and age-based discrimination remains an issue in the workforce, despite legal protections. In this article, we delve into the intricacies of age bias claims with Tilé Imo, Associate Director of Caxton Legal Centre. We explore the evolving legal landscape, effective strategies for litigating age discrimination cases, and the emerging trends that lawyers need to be aware of to best serve their clients.

Major changes ahead with the Family Law Amendment Bill 2023 in progress

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Major changes ahead with the Family Law Amendment Bill 2023 in progress

Major changes are coming that will impact the family law system and the way practitioners operate in Australia. The Family Law Amendment Bill 2023 is currently under debate in parliament and after its third reading, it is now under review with the Senate Legal and Constitutional Affairs Legislation Committee. The College of Law will provide legal training support when the Family Law Amendment Bill commences, but in the meantime, we spoke with College of Law adjunct lecturer Kathryn Kearley to find out about the most important changes.  

Graduates, prize winners honoured at the Winter 2022 Academic Awards Ceremony

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Graduates, prize winners honoured at the Winter 2022 Academic Awards Ceremony

The College of Law recognised over 200 graduates of its Postgraduate Specialisation Programs at the 2022 Academic Awards Ceremony on 1 August. These awards included the Master of Laws (Applied Law), Master of Applied Law (Family Law), Graduate Diplomas of Applied Law and Graduate Diploma of Family Dispute Resolution Practice (FDRP).

Your Guide to a Career in Property Law

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Your Guide to a Career in Property Law

Download your guide to a career in property law for everything you need to know about property law in a nutshell, the personal strengths of a property lawyer, the core expertise of a property lawyer, related areas of expertise, and the career prospects in property law.

How to Become a Partner Guide

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How to Become a Partner Guide

This guide will help you navigate the first steps towards becoming a partner. It will help you reflect on your own motivations, assess your skill set, and determine the best path forward in your career.

New Resolution Institute and The College of Law partnership to maximise skills and experience

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New Resolution Institute and The College of Law partnership to maximise skills and experience

Resolution Institute and The College of Law are pleased to announce an exciting new partnership aimed at establishing a symbiotic cooperation which will maximise the resources of both organisations through mutual collaboration and the sharing of expertise and efforts in education and training.

Legal Practice Management Course Queensland - Course Guide

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Legal Practice Management Course Queensland - Course Guide

Download the QLD Legal Practice Management Course Guide to learn how our program can prepare you to manage a law firm or take on a leadership role within an established practice.

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