$7.4 Billion Settlement Finalized in Purdue Pharma Opioid Case

A coalition of 15 states has reached a $7.4 billion settlement with Purdue Pharma and the Sackler family, marking the most significant financial resolution involving the family accused of exacerbating the opioid crisis. The agreement, announced Thursday, removes the Sacklers from Purdue’s operations and prohibits them from selling opioids in the U.S.

Under the settlement, the Sackler family will pay $6.5 billion, while Purdue will contribute nearly $900 million, pending court approval. The deal follows years of litigation against Purdue, which was accused of aggressively marketing opioids and fueling addiction nationwide.

States Push for Accountability

Led by New York, California, Texas, and 12 other states, the bipartisan negotiating team engaged in months of mediation after the U.S. Supreme Court overturned a previous $6 billion agreement. The states will now seek approval from bankruptcy and state courts, as well as support from other states and municipalities involved in opioid-related lawsuits.

Connecticut Attorney General William Tong emphasized the significance of the settlement, stating, "This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down." He described the agreement as a decisive step in holding Purdue and the Sacklers accountable for their role in the opioid epidemic.

New York Attorney General Letitia James highlighted that the deal requires the Sacklers to pay "$1.5 billion immediately" and includes $250 million allocated for New York. She also noted that previous legal protections shielding the family from additional lawsuits have been removed.

Reactions to the Settlement

Purdue Pharma expressed satisfaction with the agreement, emphasizing that the funds will go toward compensating victims, funding addiction treatment programs, and providing overdose reversal medications. "We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives," a company spokesperson stated.

The settlement follows the Supreme Court’s decision last June to invalidate a previous bankruptcy agreement that would have granted Sackler family members liability waivers in exchange for a $6 billion payout. Without the new settlement, the Sacklers faced the prospect of additional lawsuits from states and opioid victims.

What’s Next?

The case, filed under In re: Purdue Pharma LP, case number 7:19-bk-23649, is currently in the U.S. Bankruptcy Court for the Southern District of New York. The court's approval will determine how the settlement funds are distributed and whether it marks the final chapter in Purdue’s legal battles over the opioid crisis.