Purdue Pharma, Sackler family to pay $7.4 billion settlement in opioid lawsuits

Key takeaways:

• The new settlement will add $1.4 billion more than the prior one blocked by the Supreme Court.
• The settlement, which could pay up to $7.4 billion in total over 15 years, will not give immunity to the Sacklers.

Purdue Pharma and its owners have agreed to pay up to $7.4 billion in a new settlement to lawsuits regarding their role in the opioid epidemic, the attorneys general of over a dozen states announced.

The agreed-upon settlement will add $1.4 billion more than the previous one that was blocked by the U.S. Supreme Court last year and will aid states, victims and survivors in opioid treatment and recovery over the next 15 years if approved, according to a press release from the Connecticut attorney general’s office.

“This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down,” Connecticut Attorney General William Tong said in the release. “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.”

The Sackler family owned and operated Purdue Pharma, LLP, which manufactured OxyContin and advertised the drug as being less addictive.

The drug’s effects and use has been far-reaching because almost 1 million Americans aged 12 years and older used OxyContin at least once nonmedically in their lifetime, according to the U.S. Department of Justice.

Purdue Pharma initially declared bankruptcy in 2019 and pleaded guilty to federal criminal charges for its role in the opioid crisis in 2020. The Sacklers agreed to settle mass tort lawsuits in exchange for the company filing for bankruptcy and the family giving around $6 billion to that bankruptcy.

The bankruptcy plan was overturned in December 2021, but a New York court of appeals reversed that decision in May 2023, ruling that the Sacklers would be given immunity from lawsuits.

The Supreme Court then put a hold on the Purdue Pharma’s bankruptcy proceedings in August 2023, eventually ruling 5-4 to block the deal last June.

In that ruling, the Supreme Court said that the Sackler family had not filed for bankruptcy themselves “yet they seek what essentially amounts to a discharge.”

The new settlement, which was negotiated by 15 states and will not protect the Sacklers from future lawsuits, “is a significant step forward in addressing the immense harm caused by the opioid epidemic,” Connecticut Department of Mental Health and Addiction Services Commissioner Nancy Navarretta said in the release.

“These funds will help save lives, support families, and strengthen communities,” she added. “Our commitment remains resolute as we work to provide the care and resources needed to help individuals, families, and loved ones recover and rebuild their lives.”

References:

• Attorney General Tong announces Purdue Pharma and Sackler Family to pay $7.4 billion to victims, survivors and states in settlement in principle. Available at: https://portal.ct.gov/ag/press-releases/2025-press-releases/purdue-pharma-and-sackler-family-settlement-in-principle. Published Jan. 23, 2025. Accessed Jan. 24, 2025.
• OxyContin fast facts. https://www.justice.gov/archive/ndic/pubs6/6025/6025p.pdf. Accessed Jan. 24, 2025.