AG Sunday Announces National Settlement with Purdue Pharma and Sackler Family will Bring up to $212M to Pa. for Substance Abuse Treatment and Recovery Resources

January 23, 2025 | Topic: Opioids

 Sackler Family Will Pay up to $6.5 Billion Over 15 Years; their Company, Purdue Pharma, Will Pay Nearly $900 Million

HARRISBURG – Attorney General Dave Sunday 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., for their role in fueling an opioid crisis that continues to devastate families and communities across Pennsylvania.

The settlement is subject to court approval, and preliminary figures indicate Pennsylvania will receive up to $212 million from the settlement, with payouts happening over the next 15 years.

The $7.4 billion settlement — which would be 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 Sacklers and Purdue in June 2024.

“No dollar amount could ever replace what has been lost due to the opioid epidemic, but this settlement will go a long way in bolstering treatment resources and helping Pennsylvanians achieve recovery,” Attorney General Sunday said. “This epidemic, no doubt, was fueled by Purdue Pharma’s manufacturing and deceptive marketing of OxyContin, a highly potent and addictive drug. 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.”

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.

If approved, the settlement will deliver funds to the participating states, local governments, affected individuals, and other parties who have previously sued the Sacklers or Purdue. 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 in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.

A board of trustees selected by participating states in consultation with the other creditors will determine the future of the Purdue 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 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, and after six years will make public documents subject to the waiver of privilege.

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 Dave Sunday in securing the settlement in principle are the attorneys general of New York, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Tennessee, Texas, Vermont, Virginia, and West Virginia.It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.