Purdue Pharma and Sackler Family Agree to $7.4 Billion Settlement in OxyContin Lawsuits

The new settlement exceeds the previous $6 billion agreement, which was blocked by the U.S. Supreme Court last year.

In a significant development on Thursday, New York Attorney General Letitia James announced that Purdue Pharma, along with members of the Sackler family who own the company, have agreed to pay up to $7.4 billion in a new settlement over lawsuits tied to the opioid epidemic. The settlement, which involves both Purdue and the Sacklers, is an increase of more than $1 billion compared to a previous settlement proposal that was rejected by the U.S. Supreme Court last year.

Under the terms of the new deal, the Sacklers have agreed to pay up to $6.5 billion, while Purdue Pharma will contribute $900 million, totaling $7.4 billion. This is one of the largest settlements in the ongoing litigation over the opioid crisis, which has been ravaging the U.S. for years. Other related settlements have reached approximately $50 billion, most of which is designated for combating the opioid crisis and supporting those affected.

Although the settlement represents a breakthrough, it still requires court approval, and certain details are yet to be finalized. The previous settlement was opposed by a division of the federal Department of Justice, even though all states had agreed to it, and it ultimately reached the U.S. Supreme Court. However, under the administration of former President Donald Trump, the federal government is not expected to oppose this new deal.

Purdue Pharma, based in Stamford, Connecticut, expressed its satisfaction with the new agreement, stating, “We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives.”

Kara Trainor, a Michigan woman who has been in recovery for 17 years, shared her support for the deal. She became addicted to opioids after being prescribed OxyContin for a back injury 23 years ago. “Everything in my life is shaped by a company that put profits over human lives,” Trainor said.

The settlement was secured by Attorney General James, along with the attorneys general from 14 other states, including California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.

As part of the settlement, members of the Sackler family would contribute up to $6.5 billion over 15 years and relinquish ownership of Purdue Pharma. Purdue will be restructured into a new entity, with a board appointed by state officials and others involved in the lawsuits. A portion of the settlement funds will also go to victims of the opioid crisis or their surviving family members.

The Sacklers’ contribution surpasses the $6 billion agreed to under the previous settlement. The U.S. Supreme Court blocked that deal because it allowed family members to be shielded from lawsuits related to OxyContin, despite the fact that the Sacklers were not in bankruptcy. The new deal allows family members to be protected from lawsuits only from entities that agree to the settlement.

Efforts to reach a new deal have been ongoing since the Supreme Court ruling, and if this one falls through, it could result in lawsuits against the Sackler family. A court order blocking lawsuits against the Sacklers is set to expire on Friday, but parties involved in the settlement are asking a U.S. Bankruptcy Court judge to extend it through February to finalize the agreement’s details.

Some governments, including Maryland and Washington, have been consistently opposed to the extension of this order.

If the settlement is approved, it would mark a key moment in the legal battles surrounding the opioid crisis, which has been linked to hundreds of thousands of deaths since OxyContin’s release in 1996. The crisis has worsened in recent years with the rise of illicit fentanyl, contributing to over 70,000 deaths annually in the U.S.

Members of the Sackler family, who have faced public backlash for their involvement in Purdue, have had their names removed from prestigious art galleries and universities worldwide. Despite their involvement in the company, they have continued to deny any wrongdoing.

While family members are believed to be worth billions beyond their contribution to the settlement, much of their wealth is held in offshore accounts, which may be difficult to access through lawsuits. Purdue Pharma filed for bankruptcy in 2019 as it faced thousands of lawsuits claiming that the company misled doctors about the addictive potential of OxyContin.

In a filing from October 2024, one branch of the Sackler family vowed to defend itself against any lawsuits allowed to move forward, stating that the legal theory at the heart of the lawsuits—that Purdue and the Sacklers created a “public nuisance”—was “utterly devoid of merit.”