A landmark $7.4 billion settlement has garnered the support of attorneys general from 55 U.S. states and territories, aiming to resolve thousands of opioid lawsuits against drugmaker Purdue Pharma and its owners, the Sackler family. This significant agreement, with a framework initially announced in January and bolstered by Monday's declaration of support on December 4, 2023, marks a critical step towards securing court approval for Purdue Pharma's bankruptcy reorganization plan. The settlement is designed to address the nationwide opioid addiction crisis, which has been significantly fueled by the aggressive marketing of Purdue’s pain medication, OxyContin.

The comprehensive settlement package includes approximately $6.5 billion contributed by the Sackler family and around $900 million from Purdue Pharma itself. Payouts are contingent upon securing sufficient creditor support for the drugmaker’s Chapter 11 plan. Funds are designated for distribution among individuals, state and local governments, and Native American tribes. A crucial aspect of this agreement is that the Sacklers will cede control of Purdue Pharma and be permanently barred from manufacturing, selling, or marketing opioids in the United States.

New York Attorney General Letitia James emphasized the long-standing impact, stating, "For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic." She underscored that while no financial restitution can fully compensate for the devastation caused, these funds are vital for saving lives and aiding communities in their fight against the opioid crisis. Pennsylvania Attorney General Dave Sunday echoed this sentiment, highlighting the priority of getting funds quickly to prevention, treatment, and recovery programs across the Commonwealth, especially as families suffered during an unprecedented addiction crisis.

This current settlement comes after a prior $6 billion settlement was rejected by the U.S. Supreme Court last June (June 2023), primarily because it would have granted the Sacklers broad immunity from opioid-related civil lawsuits. The new, increased $7.4 billion contribution reflects the subsequent negotiations to overcome these legal hurdles and ensure greater accountability. Connecticut Attorney General William Tong noted the momentous yet insufficient nature of the settlement, acknowledging it as the culmination of years of tumultuous negotiations and legal battles reaching the highest court.

Purdue Pharma, which introduced OxyContin (a brand name of oxycodone) in the 1990s, filed for Chapter 11 bankruptcy in 2019 following thousands of lawsuits. The company expressed appreciation for the hard work of the state attorneys general and creditors, anticipating that the plan will provide billions to compensate victims, abate the opioid crisis, and deliver essential medicines to save American lives. The $7.4 billion will support addiction treatment, prevention, and recovery programs over the next 15 years, with a significant portion, including $1.5 billion from the Sacklers and $900 million from Purdue, slated for initial payments within the first three years, followed by additional payments totaling $1.4 billion.

Notably, Oklahoma is not included in this agreement, as it reached a separate $270 million settlement with Purdue Pharma and the Sacklers in 2019. More than 850,000 people have tragically died from opioid-related overdoses since 1999, according to the U.S. Centers for Disease Control and Prevention, though recent data indicates a decline in deaths. With the state sign-on period concluded, local governments nationwide will now be invited to join the settlement, pending bankruptcy court approval. A board of trustees, selected by participating states and other creditors, will oversee the future of Purdue, which will remain under a monitor and be prohibited from lobbying or marketing opioids.