55 Attorneys General sign on to $7.4 billion settlement, which ends Sacklers’ ability to sell opioids in U.S.
HARRISBURG — Attorney General Dave Sunday announced, along with 54 other Attorneys General, a $7.4 billion settlement with Purdue Pharma and owners, the Sackler family, regarding the company’s manufacturing and distribution of opioids that fueled a nationwide addiction epidemic.
The settlement resolves pending litigation against Purdue and the Sacklers, with those entities acknowledging their role in contributing to the epidemic with rampant production and aggressive marketing of opioids for decades.
The settlement also ends the Sacklers’ ownership of Purdue and their ability to sell opioids in the United States.
Pennsylvania is estimated to receive as much as $200 million from the settlement — over a period of 15 years — depending on how many municipalities sign off on the settlement terms.
”As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products,” Attorney General Sunday said. “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.”
Communities across the country will directly receive funds over the next 15 years to support addiction prevention, treatment, and recovery programs and resources.
Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion and Purdue will pay roughly $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.
This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis.
Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve resolution of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days.
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