In a historic settlement totaling $7.4 billion, the Sackler family has agreed to permanently cease all opioid sales in the United States and relinquish ownership of Purdue Pharma, the maker of the powerful painkiller OxyContin.
This agreement—still considered a settlement in principle—represents the largest resolution to date involving individuals held responsible for the opioid epidemic.
Newsweek has reached out to Purdue Pharma via email on Monday afternoon for comment.
“Pill Man” made by Frank Huntley of Worcester, Mass., from his opioid prescription pill bottles, is displayed during a protest by advocates for opioid victims outside the Department of Justice, Dec. 3, 2021, in Washington….
“Pill Man” made by Frank Huntley of Worcester, Mass., from his opioid prescription pill bottles, is displayed during a protest by advocates for opioid victims outside the Department of Justice, Dec. 3, 2021, in Washington.
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Associated Press
Why It Matters
The opioid crisis has escalated in recent years as increased prescription of opioid medications led to misuse and overdose deaths.
More than 760,000 people have died since 1999 from a drug overdose, according to the U.S. Department of Health and Human Services. And nearly 75 percent of those drug overdose deaths in 2020 involved an opioid.
What To Know
New Jersey Attorney General Matthew Platkin, a Democrat, and Republican Pennsylvania Attorney General Dave Sunday announced that all 55 attorneys general—from every U.S. state and territory—have signed onto the settlement, initially secured in January.
Under the terms of the deal, Purdue Pharma will be transformed into a public benefit company, with profits directed toward opioid addiction treatment and prevention. The Sacklers, who deny any wrongdoing, will contribute billions from their personal fortune—without filing for bankruptcy themselves—to a national opioid abatement trust.
According to a press release from Sunday’s office, Pennsylvania could receive up to $200 million from the landmark opioid settlement over the course of 15 years, though the final amount depends on how many municipalities agree to the settlement terms. Communities nationwide will also receive direct funding over that same period to bolster addiction prevention, treatment, and recovery initiatives.
What People Are Saying
Purdue Pharma told Newsweek in a statement, “Today’s announcement of unanimous support among the states and territories is a critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis, and deliver opioid use disorder and overdose rescue medicines that will save American lives. We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved.”
Pennsylvania Attorney General Sunday said in a statement: “As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products. This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth. My office will continue engagement with municipal leaders to ensure millions of dollars reach every corner of the state.”
Alabama Attorney General Steve Marshall, a Democrat, said in a statement: “Today is a testament to our steadfast commitment to providing justice and holding the Sackler family and Purdue Pharma accountable. Our commitment to the first-in-the-nation litigation strategy has positioned Alabama to bring over three quarters of a billion dollars back to our state—a state that the opioid crisis has disproportionally impacted. It’s important for local communities to take swift action to sign on to the agreement to ensure they receive the opportunity to put that money to work for our Alabama citizens in need. Together with prudent decision making, we can make a difference for our communities and law enforcement who desperately need the support.”
What Happens Next
The bulk of the settlement money is scheduled for distribution within the first three years. The Sackler family will contribute $1.5 billion up front, while Purdue Pharma will pay approximately $900 million in the initial installment. Additional payments include $500 million after the first year, another $500 million in the second year, and $400 million in the third.
Update: 6/16/25, 12:21 p.m. ET: This article was updated with additional information and remarks.
Update: 6/16/25, 12:39 p.m. ET: This article was updated with additional information and remarks.
Update: 6/16/25, 12:51 p.m. ET: This article was updated with additional information and remarks.