Golden State Today

California Attorney General Rob Bonta announced a $7.4 billion settlement in principle with the Sackler family and Purdue Pharma L.P. for their role in the opioid crisis. The agreement, reached by the bipartisan States Negotiating Committee and other parties, aims to address the consequences of decades-long opioid production and marketing under the Sacklers' leadership.

"The opioid epidemic has ravaged communities in California and across the country, forever changing society as we know it," said Attorney General Bonta. "My office has been committed to fighting this crisis, and today, we are holding accountable two of the worst perpetrators: Purdue Pharma and the Sackler Family."

The settlement requires court approval from the United States Bankruptcy Court for the Southern District of New York. If approved, it will be part of a comprehensive bankruptcy plan delivering funds to states, local governments, affected individuals, and other parties over 15 years. Initial payments include $1.5 billion from the Sacklers and nearly $900 million from Purdue shortly after confirmation of a bankruptcy plan.

The agreement ends Sackler control over Purdue and prohibits them from selling opioids in the U.S. A board of trustees will decide on Purdue's future operations while ensuring compliance with legal obligations.

If finalized, more than 30 million documents related to Purdue's business practices will become public. These documents include those linked to compliance with past consent judgments involving state attorneys general.

In 2021, a previous bankruptcy plan was invalidated by the U.S. Supreme Court due to unauthorized liability releases under bankruptcy law. The current settlement relies on consensual releases tied to payments made by members of the Sackler family.

Members involved in this settlement include eight heirs of Purdue founders Raymond and Mortimer Sackler who served on its board: Richard, Kathe, Mortimer Jr., Ilene, David, Theresa Sackler; estates belonging to Jonathan Beverly; along with associated trusts advisers children heirs also included.

Attorney General Bonta worked alongside attorneys general from New York Colorado Connecticut Delaware Florida Illinois Massachusetts Oregon Pennsylvania Tennessee Texas Vermont Virginia West Virginia secure this settlement principle.