Sackler family, Purdue Pharma reach $7.4 billion settlement with 15 states over opioid crisis

The Sackler family and Purdue Pharma, the creator of the highly addictive painkiller OxyContin, have agreed to a $7.4 billion settlement with a coalition of 15 states addressing their role in the opioid crisis, as announced by New York Attorney General Letitia James. This settlement prohibits the Sackler family from selling opioids in the U.S. and relinquishes their control over Purdue, following a Supreme Court decision that overturned a previous deal granting the family immunity from future lawsuits.

This settlement represents the largest financial agreement made with parties contributing to the opioid epidemic in the United States. The Sackler family is responsible for the majority of the payment—approximately $6.5 billion over a period of 15 years—while Purdue will contribute nearly $900 million upfront, pending court approval. Initial distributions of the settlement funds are expected to benefit communities suffering from opioid addiction, with over half of the funds allocated in the early years.

Funds from the settlement will be directed to support opioid addiction treatment, prevention, and recovery programs over the next 15 years. Attorney General James highlighted the profound suffering caused by the opioid crisis, asserting that while no amount of money can fully repair the damage done, the settlement will provide much-needed resources to affected communities.

The agreement also places Purdue Pharma in a position of bankruptcy under the oversight of a monitor, effectively barring the company from marketing or lobbying for opioids in the future. Following the Supreme Court's June 2024 ruling, which denied the Sackler family's shielding from civil claims, the previous bankruptcy settlement, which involved payments of over $4.5 billion, was nullified.

In securing about $250 million for New York alone, James expressed her commitment to pursue companies implicated in the opioid crisis to achieve justice for those who have suffered. Families like that of Cheryl Juaire, who lost two sons to addiction, continue to emphasize the urgent need for effective solutions and express hope that the new settlement will deliver the promised support to communities in distress.