The Sackler family and Purdue Pharma reached a $7.4 billion settlement with attorneys general from 15 states on Thursday, Jan. 23. The Sacklers have owned the company headquartered in Stamford, Connecticut, for decades.
The settlement includes $6.5 billion from the Sackler family, with $1.5 billion to be paid immediately, and nearly $900 million from Purdue Pharma. Funds will be distributed to states, local governments, and victims over 15 years, with a focus on addiction treatment, prevention, and recovery programs.
Nearly 727,000 people died in the U.S. from opioid overdoses between 1999 and 2022, according to the Centers for Disease Control and Prevention. The most recent wave of deaths appeared to peak in the mid-2010s but surged during the COVID-19 pandemic.
The deal ends the Sacklers' control of Purdue and bans them from selling opioids in the U.S.
"This story is about a family of cruel billionaires who believed they were above the law," said Connecticut Attorney General William Tong. "Today, we are forcing Purdue Pharma and the Sackler family to pay for their actions and the devastation they caused."
New York was one of the leaders in pursuing the pharmaceutical giant. The state will receive up to $250 million, adding to its total of more than $3 billion secured from opioid settlements.
Attorney General Letitia James said New York State's funds will support treatment and prevention programs, with a significant portion distributed in the first three years.
"Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis," James said. "The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling the opioid epidemic. While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal."
Pennsylvania will receive up to $212 million, with significant payments scheduled over the next three years. The Keystone State's share will support local governments, victims, and opioid abatement programs.
Attorney General Dave Sunday emphasized the importance of the settlement in addressing the commonwealth's public health crisis.
"Dependency on the drug ruined countless lives, while the Sackler family and Purdue made more than $35 billion from its distribution, profiting off of the suffering of others," Sunday said.
Massachusetts is set to receive up to $108 million as part of the settlement. The agreement also calls for the public release of millions of documents detailing the Sacklers' role in the crisis, including how Purdue marketed OxyContin to maximize profits.
Attorney General Andrea Campbell highlighted the importance of transparency and justice for families who suffered due to the opioid epidemic.
"The Sackler family will forever be remembered as a symbol of greed, profiting off pain to destroy countless lives across the commonwealth and country," said Campbell.
The settlement requires Purdue to disclose more than 30 million documents related to its opioid business, including communications with the Food and Drug Administration.
Massachusetts was among the first states to sue the Sacklers, accusing them of deceptive marketing and false claims about the safety of their products.
"This resolution puts an end to Purdue Pharma and the Sacklers' involvement in this industry once and for all," said Gov. Maura Healey. "It also makes sure the Sacklers can be held accountable for their actions, provides an unprecedented level of transparency into their business dealings to better ensure this never happens again, and delivers significant funding to support treatment, prevention and recovery efforts in Massachusetts."
Virginia will receive up to $107.4 million, with payments spread over 15 years. Like other states, the money will also go to programs to help those suffering from opioid addiction.
Attorney General Jason Miyares called the settlement a long-awaited victory for families.
"This historic settlement not only holds the Sackler family and Purdue Pharma accountable for their role in the opioid crisis but also ensures that communities across Virginia and the nation alike receive the essential support they need to help heal and restore lives ravaged by opioid addiction," Miyares said.
Connecticut will receive approximately $64 million under the agreement, significantly frontloading payments to provide nearly $16 million in the first year. The state first sued Purdue and the Sacklers in 2019.
Attorney General Tong said part of the Constitution State's funds would establish a trust to support survivors and the families of victims.
"This is $1.4 billion more than the settlement reached in 2022, and $3.1 billion more than the settlement Connecticut rejected in 2021," said Tong. "I have said since day one that this fight has been about justice and accountability for the hundreds of thousands of victims and families wrecked by the opioid epidemic. There will never be enough justice or dollars to restore those families or right this terrible wrong."
The attorneys general of California, Colorado, Delaware, Florida, Illinois, Oregon, Tennessee, Texas, Vermont, and West Virginia also took part in the lawsuit.
Creditors and a board of trustees selected by the states in consultation will determine Purdue Pharma's future. The company will continue to be overseen by a monitor and can't lobby or market opioids.
The settlement requires court approval before funds can be distributed.
Click here to follow Daily Voice Adelphi-Langley Park and receive free news updates.