AG Skrmetti and Bipartisan Coalition of 15 States Secure $7.4 Billion from Purdue Pharma and Sackler Family for Fueling Opioid Crisis

AG Skrmetti and Bipartisan Coalition of 15 States Secure $7.4 Billion from Purdue Pharma and Sackler Family for Fueling Opioid Crisis

Sackler Family Will Pay Up To $6.5 Billion Over 15 Years; Purdue Will Pay Nearly $900 Million On Court Approval

Thursday, January 23, 2025 | 03:07pm

NASHVILLE-Tennessee Attorney General Jonathan Skrmetti today announced that a bipartisan coalition of states and other parties have reached a $7.4 billion settlement in principle with members of the Sackler family and their company Purdue Pharma, Inc. (Purdue) for their instrumental role in creating the opioid crisis. Purdue, under the Sackler family's leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country. Although the final amount Tennessee will receive depends on multiple factors, the State anticipates receiving more than $90 million.

The settlement ends the Sackler family's control of Purdue and their ability to sell opioids in the United States. It will deliver funding directly to communities across the country over the next 15 years to support opioid addiction treatment, prevention, and recovery programs. The $7.4 billion settlement in principle, the nation's largest settlement to date with individuals responsible for contributing to the opioid crisis, comes after the United States Supreme Court overturned a prior multistate settlement with the Sackler family and Purdue in June 2024.

"Purdue Pharma is uniquely culpable for the opioid epidemic that continues to ravage our country," said Attorney General Skrmetti. "This resolution is the result of what has been repeatedly described as the most complicated litigation in American history. This multi-billion-dollar settlement cannot undo the damage done, but it will bring over ninety million dollars to Tennessee to support opioid abatement efforts in our communities."

If approved, the settlement will deliver funds to the participating states, local governments, affected individuals, and other parties who have previously sued the Sackler family or Purdue. A significant amount of the settlement funds will be distributed in the first three years. The Sackler family will contribute up to $6.5 billion to the settlement, with $1.5 billion being paid in the first payment.

In addition to delivering $7.4 billion to address the opioid crisis, the settlement reflects the end of the Sackler family's 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 company's future. Purdue will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement.

In 2021, the U.S. Bankruptcy Court for the Southern District of New York approved a multistate settlement covering Purdue and the Sackler family that would have required them to pay more than $5.5 billion. In June 2024, the United States Supreme Court invalidated the previous bankruptcy settlement with the Sackler family, holding they were not entitled to a blanket or automatic shield from liability. The current settlement, in principle, does not offer the Sackler family any such automatic protection but rather is built on consensual releases in exchange for the payments the Sackler family 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 Tennessee Attorney General Skrmetti in securing the settlement in principle are the attorneys general of California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Texas, Vermont, Virginia, and West Virginia.

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