NEW YORK — New York Attorney General Letitia James announced that 55 attorneys general, representing all eligible states and U.S. territories, agreed to a $7.4 billion settlement in principle with Purdue Pharma and its owners, the Sackler family, for their instrumental role in creating the opioid crisis.
According to a press release from the New York Attorney General’s office, James secured the settlement in principle in January, which will end 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.
New York will receive up to $250 million for opioid abatement efforts throughout the state.
“I am proud to have helped secure the support of every state and territory in the country for this plan to hold the Sackler family accountable,” James said in the release. “For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses.
“While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis. I will continue to work to deliver justice for all those affected by opioid addiction.”
Purdue, under the Sacklers’ leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country. Communities throughout New York have been hit particularly hard. While opioid overdose deaths have declined, more than 5,000 New Yorkers died from an opioid overdose in 2023.
Communities across the country will directly receive settlement funds over the next 15 years to support addiction treatment, prevention, and recovery. 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.
The Sacklers will pay $1.5 billion and Purdue will pay roughly $900 million in the first payment, expected in early 2026 pending settlement approval. Subsequent payments will be $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 total.
Like prior opioid settlements, this settlement requires resolution of legal claims by state and local governments. The local government sign-on process for this settlement will be contingent on bankruptcy court approval.
With the addition of up to $250 million from this settlement, James has secured New York state more than $3 billion from opioid manufacturers and distributors for their role in the opioid epidemic.
These include Mylan, 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, 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.
Joining James in this settlement in principle are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, American Samoa, the District of Columbia, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
