Attorney General Bonta Helps Secure $7.4 Billion from Purdue Pharma and the Sackler Family for Fueling the Opioid Crisis

Sackler family will pay up to $6.5 billion over 15 years; Purdue will pay nearly $900 million on court approval

OAKLAND - California Attorney General Rob Bonta today announced that the bipartisan States Negotiating Committee and other parties have reached a $7.4 billion settlement in principle with members of the Sackler family and their former company Purdue Pharma L.P. (Purdue) for their instrumental role in creating and exacerbating the opioid crisis. Purdue, under the Sacklers' leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country. The settlement ends the Sacklers' control of Purdue and ability to sell opioids in the United States, and will deliver funding directly to communities across the country over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.

"The opioid epidemic has ravaged communities in California and across the country, forever changing society as we know it. My office has been committed to fighting this crisis, and today, we are holding accountable two of the worst perpetrators: Purdue Pharma and the Sackler Family," said Attorney General Bonta. "I want to thank my team at the California Department of Justice and my fellow attorneys general for making this historic settlement possible. Those who prioritize profits over people will continue to face serious consequences."

If approved by the United States Bankruptcy Court for the Southern District of New York, today's proposed settlement, which will be part of a comprehensive bankruptcy plan of reorganization, will deliver funds to the participating states, local governments, affected individuals, and other parties. A significant amount of the settlement funds will be distributed in the first three years, with the Sacklers paying $1.5 billion and Purdue paying nearly $900 million soon after a bankruptcy plan is confirmed, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. California is expected to receive hundreds of millions of dollars for opioid abatement.

The settlement also reflects the end of the Sacklers' control of Purdue and bars them from selling opioids in the United States. A board of trustees selected by participating states in consultation with the other creditors will determine the future of the company. Purdue will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement.

If approved, the proposed bankruptcy plan and related settlement will make public more than 30 million documents related to Purdue and the Sacklers' opioid business. The document repository will now also contain documents relating to compliance with the 2007 State Attorneys General Consent Judgments with Purdue, and after six years will make public certain documents that were subject to attorney-client and work-product protection.

In 2021, the United States Bankruptcy Court for the Southern District of New York approved a bankruptcy plan covering Purdue and the Sackler family that would have required the Sacklers to pay billions of dollars in exchange for non-consensual releases from liability. In June 2024, the United States Supreme Court invalidated the previous bankruptcy plan, holding that the Bankruptcy Code did not authorize such nonconsensual shields from liability. The current settlement in principle is built on consensual releases in exchange for the payments the Sacklers will be making.

Members of the Sackler family included in the settlement in principle include the eight heirs of Purdue founders Raymond and Mortimer Sackler who served on the Board of Purdue: Richard, Kathe, Mortimer Jr., Ilene, David, and Theresa Sackler; and the estates of Jonathan and Beverly Sackler. In addition, their associated trusts, advisers, and most of their children and heirs are also included.

Joining Attorney General Bonta in securing the settlement in principle are the members of the States Negotiating Committee: the attorneys general of New York, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.