Purdue Pharma, the company and once-prominent family behind OxyContin, has reached a $7.4 billion settlement with all 50 states, Washington, D.C., and four U.S. territories. This development follows earlier reports that the company, under the leadership of the Sackler family, had been facing pending litigation concerning their role in the nation’s opioid crisis.
The settlement marks the largest of its kind involving the opioid crisis. The attorneys general in 55 states and territories have signed onto the agreement, which will end the Sacklers’ ownership of Purdue and bar them from manufacturing, selling, or marketing opioids in the U.S. States leading the negotiation of the settlement included California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.
Purdue introduced OxyContin in the 1990s and filed for chapter 11 bankruptcy in 2019 after being sued thousands of times. The U.S. Supreme Court overturned a prior settlement in June 2024 that would have awarded $6 billion to state and local governments.
The facts indicate that Purdue and the Sacklers increased their settlement contribution to $7.4 billion. The funds will support opioid addiction treatment, prevention, and recovery programs over the next 15 years, with a significant portion being distributed in the initial three years.
Despite the significant settlement, doubts remain. ‘There will never be enough justice, accountability, or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family’s craven misconduct,’ Connecticut Attorney General William Tong said in a statement on Monday.
The future of the Purdue company will be determined by a board of trustees selected by participating states in consultation with other creditors, and will continue to be overseen by a monitor. The company will be prevented from lobbying or marketing opioids.
As we consider the implications of this settlement, it is important to remember the thousands of lives affected by the opioid crisis and the ongoing need for support and resources in combating addiction.
