Purdue Pharma to pay $7.4 billion in opioid lawsuit settlement
Purdue Pharma and its owners, the Sackler family, are set to pay $7.4 billion to settle lawsuits regarding the drug company's manufacturing and distribution of opioids.
The Sackler family and its company had agreed to bump up their settlement contribution to $7.4 billion in January. On Monday, officials announced the attorneys general in all 50 states, Washington, D.C. and four U.S. territories agreed to the settlement.
Besides the hefty financial reward, the settlement also ends the Sacklers' ownership of Purdue Pharma and their ability to sell opioids in the U.S.
For years, Purdue Pharma and the Sackler family have been facing the legal and financial consequences of what prosecutors said was its role in fueling a nationwide opioid epidemic with the OxyContin painkiller.
Purdue Pharma started manufacturing the drug in the mid-90s, and in 2007, three current and former company executives pleaded guilty to misleading the public about the drug's risk of addiction.
Drug overdose deaths involving prescription opioids rose from under 3,500 in 1999 to more than 17,000 in 2017, according to the National Institute on Drug Abuse. Drug overdose deaths in general had a record year-to-year decline in 2024, with fewer than 30,000 fatal overdoses than in 2023.
In 2019, Purdue Pharma filed for bankruptcy protection after more than 2,600 lawsuits were filed against it.
The newly agreed-upon $7.4 billion settlement is a show of strength and unity among the justice system against the nation's deadly opioid crisis.
From coast to coast, attorneys general celebrated the victory over Purdue Pharma and the Sackler family.
New York Attorney General Letitia James said Monday when announcing the settlement agreement: 'For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses.
While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis. I will continue to work to deliver justice for all those affected by opioid addiction.'
New York will receive up to $250 million through the settlement.
California Attorney General Rob Bonta said in a statement Monday: 'The opioid epidemic has ravaged communities in California and across the country. The companies and individuals who fueled this crisis must be held accountable. With today's announcement, the California Department of Justice is continuing to deliver results for our communities.'
The Golden State will receive up to $440 million from the settlement.
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