Attorney General Rob Bonta announced that 55 attorneys general from various states and U.S. territories have agreed to a $7.4 billion settlement with Purdue Pharma L.P. and its owners, the Sackler family. This settlement aims to resolve litigation against Purdue and the Sacklers for their involvement in the national opioid crisis. Following this agreement, local governments will be invited to join the settlement pending bankruptcy court proceedings.
“The opioid epidemic has ravaged communities in California and across the country. The companies and individuals who fueled this crisis must be held accountable,” stated Attorney General Bonta. He emphasized that by holding Purdue Pharma and the Sackler family accountable, funds would be allocated for addiction treatment, prevention, and recovery efforts.
Under the terms of the settlement, Purdue’s control by the Sacklers will end, as will their ability to sell opioids in the United States. Communities nationwide are set to receive funds over 15 years to aid addiction-related initiatives. California could receive up to $440 million from this settlement during this period.
The initial distribution of most settlement funds is planned for within three years. The Sacklers are expected to pay $1.5 billion initially, with Purdue contributing approximately $900 million in first payments, followed by additional payments totaling $1.4 billion over three years.
Similar to past opioid settlements, this one involves resolving legal claims by state and local governments subject to bankruptcy court approval. A hearing on these matters is anticipated soon.
This agreement marks an end to the Sacklers’ influence over Purdue and prohibits them from selling opioids in the U.S., while a board of trustees will decide on Purdue’s future operations under supervision without lobbying or marketing opioids.
Including this deal with Purdue/Sackler, California has secured settlements totaling up to $4.6 billion from companies linked to fueling the opioid crisis.
Attorney General Bonta worked alongside attorneys general from numerous states including Alabama, Alaska, Arizona, Colorado, Florida, Illinois, New York among others in securing this landmark settlement.
