The United States Bankruptcy Court for the Southern District of New York has approved a $7.4 billion settlement involving Purdue Pharma, its owners the Sackler family, and 55 state attorneys general. This settlement resolves extensive litigation regarding Purdue and the Sacklers’ role in the opioid crisis.
Connecticut Attorney General William Tong commented on the court’s decision: “Today’s confirmation permanently exiles the Sackler Family from the addiction industry and ensures that their name be forever synonymous with greed, shame and devastation. There is no amount of money, no amount of justice that will ever make whole the lives lost, and families destroyed by the Sackler Family and Purdue Pharma’s craven pursuit of profit. What we have today is a $7.4 billion promise to every victim, every family and every community that we will never stop fighting for them, and that we will use every opportunity from this settlement to save lives through treatment and prevention, as well as direct support to victims and their families,” said Attorney General Tong.
Under this agreement, Connecticut could receive up to $64 million over eight years for opioid treatment, prevention efforts, and direct support to those affected by opioid addiction. Most funds are scheduled for distribution within the first three years. The Sacklers are set to pay $1.5 billion initially; Purdue will contribute about $900 million in the first payment. Additional payments include $500 million after one year, another $500 million after two years, and $400 million after three years.
The settlement ends both Purdue Pharma’s control by the Sackler family and their ability to sell opioids in the United States. It also requires public disclosure of more than 30 million documents related to Purdue’s business practices, including compliance materials dating back to 2007.
Connecticut filed its initial lawsuit against Purdue Pharma and individual Sackler family members in 2019, expanding later that year with further allegations such as fraudulent transfers intended to shield wealth from legal claims. After Purdue filed for bankruptcy in September 2019, an earlier plan was approved but subsequently challenged by Connecticut and other states due to provisions shielding the Sacklers from future lawsuits.
In December 2021, a U.S. District Court vacated that bankruptcy order—agreeing with objecting states—and allowed new negotiations leading to an increased settlement offer before being overturned by the Supreme Court. The latest mediation resulted in this current agreement.
A bipartisan coalition led these negotiations with Connecticut joined by New York, California, Colorado, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia.
The settlement includes eight heirs of Raymond and Mortimer Sackler who served on Purdue’s board—Richard, Kathe, Mortimer Jr., Ilene, David and Theresa Sackler—as well as estates of Jonathan and Beverly Sackler along with associated trusts and advisers.
Overall nationwide efforts led by Connecticut have secured more than $50 billion for combating opioid addiction; Connecticut alone is set to receive about $600 million for treatment programs. The allocation of these funds falls under Connecticut’s Opioid Settlement Advisory Committee composed of health professionals as well as state and local leaders.
