$7.4 Billion Purdue Pharma Opioid Settlement Goes into Effect

$7.4 Billion Purdue Pharma Opioid Settlement Goes into Effect

Missouri to receive more than $91 million

JEFFERSON CITY, Mo. - Today, Attorney General Catherine Hanaway announced that a $7.4 billion settlement reached with Purdue Pharma and its owners, the Sackler family, has become legally effective. This settlement caps nearly a decade of work by attorneys general from across the country in pursuing investigations and litigation over Purdue's and the Sacklers' role in fueling the opioid crisis. The attorneys general launched a multistate investigation of Purdue in 2016, and Missouri sued Purdue Pharma in 2017.

After Purdue filed bankruptcy in September 2019 in light of massive litigation against it, the attorneys general have taken a lead role in the bankruptcy proceedings, including negotiating a new settlement that obtained more money from the Sacklers after the United States Supreme Court in June 2024 invalidated provisions from a prior settlement. The effective settlement gives funds to communities across the country, as well as individual victims and other groups who filed claims in the bankruptcy proceedings.

"For too long, parents, children, and communities across our state have borne the heartbreaking costs of the opioid epidemic. Purdue Pharma's actions have harmed countless consumers, and this settlement brings accountability and a measure of justice for the victims of this devastating crisis," said Attorney General Hanaway. "My office will continue to work to protect consumers and advocate for the well-being of Missouri families."

Fifty-five attorneys general representing all eligible U.S. states and territories previously signed onto the settlement. It resolves litigation against Purdue and the Sacklers for producing and aggressively marketing opioids in the United States, fueling the largest drug crisis in the nation's history.

"The opioid epidemic has taken an enormous toll on the citizens and communities of Missouri," said Valerie Huhn, Director of the Missouri Department of Mental Health. "These settlement dollars directed to state and local governments are extremely important to support the public health responses like expanded treatment and prevention programs."

The settlement permanently bars the Sacklers from selling opioids in the U.S. and delivers funds for addiction treatment, prevention, and recovery to communities across the country over the next 15 years. Missouri is expected to receive $91,333,005.76 from the settlement.

Most settlement funds will be distributed in the first three years. The Sacklers are paying more than $1.5 billion today, followed by approximately $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Additionally, Purdue is paying approximately $900 million today. The settlement also provides Purdue and the Sacklers will make public more than 30 million documents related to their opioid business.

The settlement also means that Purdue's manufacturing operations transfer effective today to Knoa Pharma LLC, which will be overseen by a board of directors who had no connection to Purdue. The settlement prevents Knoa from marketing opioids and provides for an independent monitor to ensure it provides these medicines in the safest possible manner that limits the risk of diversion.

Missouri's participation was coordinated by Assistant Attorney General Rebecca Pinto and Paralegal Linda Ruegge.

Attorney General Hanaway is joined in reaching the settlement by Attorneys General of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.