Pennsylvania To Receive $212M In Settlement With Sacklers, Purdue Pharma
$7.4 billion settlement is largest to date with those contributing to the opioid crisis
January 23, 2025
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$7.4 billion settlement is largest to date with those contributing to the opioid crisis
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 U.S. Supreme Court overturned a prior multistate settlement with the Sacklers and Purdue in June 2024.
The pharmaceutical company introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The $7.4 billion will go directly to communities across the U.S. – including states, counties, cities and territories – over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.
Purdue Pharma planned to exit bankruptcy last year under terms that gave the Sacklers a full release from all civil opioid claims even though they themselves were not declaring bankruptcy. In return, the Sacklers agreed to pay $6 billion.
The Supreme Court rejected the attempt by the Sacklers to use Purdue Pharma’s bankruptcy to shield themselves from liability.
“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,” 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. The Sacklers will also no longer have liability protection from future lawsuits as they previously demanded.
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.
Purdue Pharma said in a statement to ABC News, “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. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court.”
Joining 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.
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 U.S. Supreme Court overturned a prior multistate settlement with the Sacklers and Purdue in June 2024.
The pharmaceutical company introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The $7.4 billion will go directly to communities across the U.S. – including states, counties, cities and territories – over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.
Purdue Pharma planned to exit bankruptcy last year under terms that gave the Sacklers a full release from all civil opioid claims even though they themselves were not declaring bankruptcy. In return, the Sacklers agreed to pay $6 billion.
The Supreme Court rejected the attempt by the Sacklers to use Purdue Pharma’s bankruptcy to shield themselves from liability.
“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,” 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. The Sacklers will also no longer have liability protection from future lawsuits as they previously demanded.
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.
Purdue Pharma said in a statement to ABC News, “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. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court.”
Joining 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.
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 U.S. Supreme Court overturned a prior multistate settlement with the Sacklers and Purdue in June 2024.
The pharmaceutical company introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The $7.4 billion will go directly to communities across the U.S. – including states, counties, cities and territories – over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.
Purdue Pharma planned to exit bankruptcy last year under terms that gave the Sacklers a full release from all civil opioid claims even though they themselves were not declaring bankruptcy. In return, the Sacklers agreed to pay $6 billion.
The Supreme Court rejected the attempt by the Sacklers to use Purdue Pharma’s bankruptcy to shield themselves from liability.
“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,” 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. The Sacklers will also no longer have liability protection from future lawsuits as they previously demanded.
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.
Purdue Pharma said in a statement to ABC News, “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. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court.”
Joining 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.
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 U.S. Supreme Court overturned a prior multistate settlement with the Sacklers and Purdue in June 2024.
The pharmaceutical company introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The $7.4 billion will go directly to communities across the U.S. – including states, counties, cities and territories – over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.
Purdue Pharma planned to exit bankruptcy last year under terms that gave the Sacklers a full release from all civil opioid claims even though they themselves were not declaring bankruptcy. In return, the Sacklers agreed to pay $6 billion.
The Supreme Court rejected the attempt by the Sacklers to use Purdue Pharma’s bankruptcy to shield themselves from liability.
“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,” 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. The Sacklers will also no longer have liability protection from future lawsuits as they previously demanded.
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.
Purdue Pharma said in a statement to ABC News, “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. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court.”
Joining 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.
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