Nationwide Agreement Reached in Landmark $7.4 B Purdue–Sackler Settlement
An unprecedented $7.4 billion settlement has been agreed upon by all 50 U.S. states, the District of Columbia, and four territories, resolving long-standing lawsuits against Purdue Pharma and the Sackler family, according to officials Monday.
The agreement settles claims that Purdue, under Sackler control, created, manufactured, and aggressively marketed opioid medications—such as OxyContin—that helped drive waves of addiction and overdose deaths nationwide. A total of 55 state and territorial attorneys general have endorsed the deal, which will strip the Sacklers of their ownership in Purdue and prohibit them from being involved in opioid production, marketing, or sales in the U.S.
Leading the legal team were California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia—negotiating what has now become the largest settlement in U.S. opioid litigation.
Reflecting on the agreement, Pennsylvania Attorney General Dave Sunday remarked, “As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits… This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth.”
Purdue introduced OxyContin in the 1990s and filed for Chapter 11 bankruptcy in 2019 amid thousands of lawsuits. Although the U.S. Supreme Court in June 2024 rejected a prior $6 billion settlement, the Sacklers responded by increasing their contribution to reach $7.4 billion.
In a joint statement, Purdue noted, “Today’s announcement of unanimous support… is a critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis, and deliver opioid use disorder and overdose rescue medicines that will save American lives.”
Over the next 15 years, funds from the settlement will be allocated to opioid addiction treatment, prevention, and recovery programs. A large portion will be distributed within the first three years: the Sacklers are to pay $1.5 billion, and Purdue will pay approximately $900 million up front, followed by annual installments of $500 million (years one and two) and $400 million (year three).
Connecticut Attorney General William Tong acknowledged the settlement as momentous, yet insufficient: “There will never be enough justice, accountability or money to restore the families… What we announce today is both momentous and insufficient.”
With the state sign-on period now closed, local governments nationwide will be invited to participate, pending bankruptcy court approval at a hearing scheduled for Wednesday. Moving forward, a trustee board, selected by participating states and creditors, will oversee Purdue’s operations. The restructured company will remain under court supervision and barred from lobbying or selling opioids.
This historic settlement marks a significant step toward delivering resources to those impacted by the opioid crisis and reshaping accountability within the pharmaceutical industry.
Source: ABC News