States’ $7.4B settlement with Purdue Pharma nears closure

Fifty-five attorneys general have agreed to sign on to a $7.4 billion nationwide settlement with Purdue Pharma and its owners, the Sackler family, the Virginia attorney general’s office announced Monday. If the settlement is approved by the federal bankruptcy court, Virginia would receive up to $103.8 million over the next 15 years.

According to state Attorney General Jason Miyares‘ statement, the Sackler family has “indicated its plan to proceed with the settlement,” allowing them to resolve litigation for Purdue’s alleged role in causing widespread opioid abuse.

Although the sign-off by attorneys general from all eligible states and U.S. territories is a significant benchmark in reaching the settlement, which was announced in January, a federal bankruptcy judge must approve the deal before it goes into effect. A hearing is expected to be held in coming days, Miyares said.

In 2024, the U.S. Supreme Court overturned an earlier settlement agreement for $4.3 billion, in part because that agreement would have protected the Sackler family from future civil liability claims, which the new settlement does not include.

Virginia plans to invest the $103.8 million in settlement funding into local prevention, treatment and recovery for opioid addiction, Miyares said in the statement.

“The Sacklers spent years fueling an epidemic that shattered families, wrecked communities and cost hundreds of thousands of American lives,” Miyares said. “Though no amount of money will ever bring back those we’ve lost or undo the incomprehensible level of harm caused, these settlement funds will be invested in treatment, prevention and recovery efforts across Virginia, helping our communities heal and saving lives.”

According to the settlement terms, the Sackler family will no longer own Purdue Pharma, the maker of OxyContin, or be allowed to sell opioid drugs in the United States. The family members will pay $1.5 billion, and Purdue will pay the other $5.9 billion in installments, with most of the settlement funds distributed in the first three years of the deal.