States Agree To $7.4B Settlement With Purdue In Opioid Litigation

(Source: MIRS.news, Published 06/17/2025) All 50 states, Washington, D.C. and four U.S. territories agreed to sign onto a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family.

Attorney General Dana Nessel said Monday that the settlement, which the Sackler family also agreed to, resolves litigation against Purdue and the Sackler family for their role in creating and worsening the opioid crisis across the country.

"After years of settlement negotiations, this agreement finally ensures Purdue is held responsible for its role in fueling the opioid epidemic," Nessel said. "No amount of money can undo the harm caused, but we are already seeing funds from other settlements make a real difference in prevention, treatment, and recovery efforts."

The historic settlement, which the attorneys general said will end the Sacklers' ownership of Purdue and bar them from making, selling or marketing opioids in the U.S., means Michigan's state and local governments will receive as much as $154 million from this settlement over the next 15 years.  

Most of the settlement funds will be distributed in the first three years.

The Sacklers will pay $1.5 billion, and Purdue will pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years and $400 million after three years, according to a release from the AG's office.

Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement, contingent on bankruptcy court proceedings.  

Under the Sacklers' ownership, Purdue made and aggressively marketed opioid products – including OxyContin, the brand name for oxycodone – for decades, which was labeled by the AGs as fueling the largest drug crisis in the nation's history.

This settlement, which will support opioid addiction treatment, prevention and recovery programs over the next 15 years, in principle is the nation's largest settlement to date with the individuals responsible for the opioid crisis.

A hearing is scheduled on that matter in the coming days. 

Nessel, who took office in 2019, has focused on combating the opioid epidemic and holding accountable those responsible for creating and fueling the crisis, resulting in over $1.6 billion dollars to Michigan governments through settlements with McKinsey & Co., Cardinal, McKesson and AmerisourceBergen, Janssen Pharmaceuticals, Teva Pharmaceutical, Allergan Pharmaceutical, CVS, Walmart and Walgreens.

Analysis of provisional data from the Michigan Department of Health and Human Services indicates a 34 percent reduction in overdose deaths between 2023 and 2024 – about 1,000 fewer deaths.