OxyContin maker Purdue Pharma, and its owners the Sackler family, agreed to a $7.4 billion settlement over the role of the company’s powerful prescription painkiller in the opioid crisis.
The settlement, which was announced by attorneys general from several states Thursday, represents an increase over a previous settlement deal that was rejected last year by the U.S. Supreme Court.
“Under this settlement, in principle, it still needs to get approved, the Sackler family will pay more money, they will pay a billion dollars more in cash,” said Connecticut Attorney General William Tong, who joined the multi-state lawsuit.
The deal still needs court approval, and some of the details are yet to be ironed out. An arm of the federal Department of Justice opposed the previous settlement, even after every state agreed, and took the battle to the U.S. Supreme Court. But under President Donald Trump, the federal government is not expected to oppose the new deal.
“We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives,” Stamford, Connecticut-based Purdue said in a statement.
Settlement latest to hold companies responsible for opioid epidemic
Thursday’s settlement added to the more than $50 billion announced in recent years, and is $1.4 billion more than the previous settlement. That deal was invalidated by the U.S. Supreme Court in June 2024 because it protected the Sacklers from civil lawsuits even though the family members themselves were not in bankruptcy. The current terms accelerate funds to states for opioid treatment and recovery.
“We're going to get our money in roughly eight years, with a big payment coming in the first year at $16 million,” Tong said of Connecticut’s share.
Connecticut has received close to $160 million from other opioid settlements, of which slightly more than a half has been allocated towards prevention, treatment and opioid-harm reduction efforts statewide.
“These initiatives will strengthen prevention, treatment, recovery and harm reduction efforts across the state,” said Nancy Navarretta, commissioner of the Department of Mental Health and Addiction Services.
“We could reach $600 million. Previous to this announcement, we've already put out $91.3 out the door with the help of my colleagues who are on the Opioid Settlement Advisory Committee,” she said.
Purdue’s next innings
Purdue in 2021 emerged from Chapter 11 bankruptcy as Knoa Pharma (pronounced “No-ah”) “dedicated to the public good.” The company’s opioid overdose reversal drug Zurnai was approved by the Food and Drug Administration in 2024.
Under the new proposal, like the previous one, members of the Sackler family would also give up ownership of Purdue. They've already stepped down from the company's board and have not taken distributions from Purdue since before the bankruptcy filing. The company would become a new entity with its board appointed by states and others who sued the company.
Members of the Sackler family have been cast as villains and have seen their name removed from art galleries and universities around the world because of their role in the privately held company. They’ve continued to deny claims of any wrongdoing.
Collectively, family members have been estimated to be worth billions more than they'd contribute in the settlement, but much of the wealth is in offshore accounts and might be impossible to access through lawsuits.
Tong, a Democrat, said the settlement will be a big hit to the personal wealth of the Sackler family, but not financial ruin for them.
“This is about families impacted by this crisis. And this is about a group of people and a family that are among the most notorious wrongdoers … and we are holding them accountable,” he said.
The Associated Press contributed to this report.
