Attorney General Formella Joins $7.4B Purdue Settlement; New Hampshire to Get $30M

Concord, NH - Attorney General John M. Formella announces that he and all 54 of his fellow attorneys general, representing all eligible U.S. states and territories, have agreed to sign on to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The Sackler family has also informed the attorneys general of its plan to proceed with the settlement, which would resolve litigation against Purdue, and the Sacklers, for their role in creating and worsening the opioid crisis across the country. Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.

"This agreement holds Purdue Pharma and the Sackler family accountable for their role in fueling the opioid crisis," said Attorney General Formella. "While no settlement can reverse the devastation caused, this funding-up to $30 million for New Hampshire-will directly support treatment, recovery, and prevention efforts in communities across our state. These resources are critical as we continue working to address the long-term impact of this epidemic."

Under the Sacklers' ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation's history. The settlement ends the Sacklers' control of Purdue and their ability to sell opioids in the United States. Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation's largest settlement to date with individuals responsible for the opioid crisis.

Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion, and Purdue will pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.

Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve resolution of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. New Hampshire's receipt of the maximum amount from this settlement is contingent on all eligible subdivisions signing releases. A hearing is scheduled on that matter in the coming days.

New Hampshire will receive as much as $30 million from this settlement over the next 10 years.

To date, the Granite State has received more than $97.4 million in opioid settlement funds from either settlement agreements or bankruptcy courts orders with the following companies: McKinsey; McKesson, Cardinal Health, and AmerisourceBergen; Janssen; CVS; Walgreens; Walmart; Teva; Allergan; Publicis Health; and Mallinckrodt. Several cases remain pending in bankruptcy courts, including those involving: Endo; Rite Aid; and Purdue Pharma/the Sackler Family.

Of the settlement funds received, New Hampshire has awarded $60.9 million in grants-approved by the Governor and Executive Council-to support programs focused on the prevention, treatment, and recovery of substance use disorders. An additional $14.4 million has been allocated directly to all ten counties as well as the following cities and towns: Belmont, Berlin, Claremont, Concord, Derry, Dover, Franklin, Keene, Laconia, Londonderry, Manchester, Nashua, and Rochester, to support similar substance use initiatives.