AG James secures $7.4B in principle from Purdue Pharma

ALBANY | New York Attorney General Letitia James has announced that a bipartisan coalition of states and other parties led by the Office of the Attorney General (OAG) has reached a $7.4 billion settlement in principle with members of the Sackler family and their company Purdue Pharma, Inc., (Purdue) for their instrumental role in creating the opioid crisis. Purdue, under the Sacklers' leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country. 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. The $7.4 billion settlement in principle - 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. "Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis," said Attorney General James. "The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling the opioid epidemic. While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal. The Sacklers no longer have control of Purdue and will never be allowed to sell opioids in the United States again. I will continue to go after the companies that caused the opioid epidemic and fight to get justice for those who have suffered." 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 $1.5 billion paid out in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. New York will receive up to $250 million from the settlement, which will support opioid treatment and recovery programs throughout the state. In addition to delivering $7.4 billion to address the opioid crisis, the settlement reflects the end of the Sacklers' control of Purdue and bars them from selling opioids in the United States. A board of trustees selected by participating states in consultation with the other creditors will determine the future of the company. Purdue will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement. In March 2019, Attorney General James filed the nation's most extensive lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid crisis. Among the manufacturers named in the complaint were Purdue Pharma and its affiliates as well as members of the Sackler family and trusts they control. In 2021, the U.S. Bankruptcy Court for the Southern District of New York approved a multistate settlement covering Purdue and the Sackler family that would have required them to pay more than $5.5 billion. In June 2024, the United States Supreme Court invalidated the previous bankruptcy settlement with the Sacklers, holding that they were not entitled to a blanket or automatic shield from liability. The current settlement in principle does not offer the Sacklers any such automatic protection, but rather is built on consensual releases in exchange for the payments the Sacklers will be making. 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 AG James in securing the settlement in principle are the attorneys general of California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia. With the addition of up to $250 million from this settlement, AG James has secured more than $3 billion for New York State from opioid manufacturers and distributors for their role in the opioid epidemic. These include Indivior, Amneal Pharmaceuticals, Hikma Pharmaceuticals, Teva Pharmaceuticals, Johnson & Johnson, Mallinckrodt, Allergan, Endo, McKesson, Cardinal Health, and Amerisource Bergen. Attorney General James has also led multistate coalitions in reaching settlements for billions of dollars with CVS, Walgreens, and Walmart for their roles in failing to properly regulate opioid prescriptions. Additionally, Attorney General James co-led with a bipartisan coalition of states in securing settlements with consulting firm McKinsey & Company and the marketing firm Publicis Health for their role in fueling the opioid crisis. This matter was handled for New York by First Deputy Attorney General Jennifer Levy with assistance from Special Counsel David Nachman, Senior Advisor & Special Counsel M. Umair Khan, Special Counsel Andrew Amer, Assistant Attorney General & Special Assistant to the First Deputy Gina Bull, Special Counsel for Complex Litigation Colleen Faherty, all of the Executive Division, along with Senior Advisor to the Criminal Division Gary Fishman, former Special Counsel Eric Haren, Civil Recoveries Section Chief Martin Mooney, Assistant Attorney General Noah Popp of the Consumer Frauds Bureau, Assistant Attorney General Robert Rock of Civil Recoveries, Assistant Attorneys General Jennifer Simcovitch and Eve Wooden of the Health Care Bureau, Director of Research and Analytics Victoria Khan, Data Scientists Ken Morales and Blake Rubey, Paige Podolny, Kristin Petrella, Hewson Chen, and Darlene Eng of the Practice Technologies Group, and Legal Support Analyst Labiba Hasan.

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AG James secures $7.4B in principle from Purdue Pharma

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