Purdue Pharma and members of the Sackler family, the company’s owners, have agreed to a $7.4 billion settlement to resolve lawsuits related to their role in the opioid epidemic.
The settlement, announced Thursday by New York Attorney General Letitia James, increases a previous deal by over $1 billion after it was rejected by the U.S. Supreme Court in June 2024.
The funds will be distributed over 15 years to support opioid addiction treatment, prevention, and recovery efforts across the United States.
The agreement ends the Sackler family’s control over Purdue Pharma and permanently bars them from selling opioids in the United States.
Purdue will be restructured into a public benefit company overseen by a board of trustees selected by participating states and creditors.
The company will focus on producing life-saving drugs, such as treatments for overdose and addiction, with profits directed toward addressing the opioid crisis. New York is expected to receive up to $250 million, which will fund opioid treatment and recovery programs across the state.
The settlement resolves years of litigation brought by state and local governments and thousands of individuals against Purdue Pharma and the Sacklers, who were accused of aggressively marketing OxyContin while downplaying its addictive risks.
Purdue pleaded guilty in 2020 to federal charges, including conspiracy to defraud the United States and violating anti-kickback laws, resulting in record criminal penalties.
Despite the company’s admissions, members of the Sackler family have not faced criminal charges, though they have agreed to civil penalties that leave them with significant assets.
While the Sackler family’s combined net worth reached more than $10.8 billion in late 2024, according to multiple outlets, this pending deal will require them to pay $6.5 billion over the course of 15 years.
Attorney General James, who has led efforts to hold the Sacklers and other entities accountable for the opioid crisis, emphasized that while no amount of money can undo the devastation caused, the settlement will provide critical resources to help communities recover.
This agreement comes after years of legal challenges, including a 2021 bankruptcy court-approved settlement that was invalidated by the Supreme Court. Unlike the previous deal, the current settlement does not grant the Sacklers blanket immunity from lawsuits.
Spread over 15 years, the payments amount to approximately $433 million annually, representing about 6% of their reported total net worth per year.
While this is a substantial financial obligation, the family is expected to retain billions in assets even after the settlement payments are complete.
Critics have argued that, given the scale of the opioid epidemic and the profits the Sacklers amassed over decades from the sale of OxyContin, the settlement represents only a fraction of their wealth.
This has fueled frustration among victims and advocates, many of whom believe the financial penalties do not fully reflect the harm caused by the opioid crisis.
However, proponents of the settlement emphasize its size—one of the largest ever involving individuals—and its potential to provide much-needed resources for addiction treatment and recovery programs across the United States.
The settlement also carries reputational and legal consequences for the Sacklers.
The family will no longer have control of Purdue Pharma, and their ability to sell opioids in the U.S. has been permanently barred.
Also, the deal does not shield them from potential criminal liability, leaving the door open for future legal challenges. While the payments are likely to reduce the family’s financial influence, the penalties are not expected to bring about a fundamental change to their overall wealth or standard of living.
This settlement is part of broader efforts to address the opioid epidemic, which has claimed hundreds of thousands of lives in the United States, which has secured settlements with opioid manufacturers, distributors, and consulting firms, including Johnson & Johnson, CVS, Walgreens, and McKinsey & Company.
If approved by the bankruptcy court, this $7.4 billion agreement will represent the largest financial resolution to date involving individuals and companies tied to the opioid crisis.
While the Sacklers will no longer have a role in the pharmaceutical industry, the settlement aims to ensure accountability and provide resources to mitigate the lasting impacts of the epidemic.