All 50 States Back $7.4 Billion Opioid Settlement with Purdue Pharma and Sacklers

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In a rare show of national consensus, the attorneys general from all 50 states, Washington D.C., and four U.S. territories have agreed to a sweeping $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The deal aims to bring resolution to thousands of lawsuits tied to the opioid crisis—one of the deadliest public health emergencies in modern U.S. history.

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As part of the agreement, members of the Sackler family will formally acknowledge their role in fueling the opioid epidemic through aggressive marketing and unchecked production of painkillers over decades. The funds are intended to aid recovery efforts across the country, but many advocates argue it still falls short of true justice.

Local governments nationwide will now be invited to sign on, pending approval from a bankruptcy judge. A key hearing is scheduled for Wednesday, when U.S. Bankruptcy Judge Sean Lane is expected to weigh Purdue’s request to set a timeline for finalizing the deal.

“This is both a historic milestone and a painful reminder of how far-reaching the damage has been,” said Connecticut Attorney General William Tong. “No amount of money can undo the devastation or bring back lost lives—but this resolution is a necessary step forward.”

The current agreement follows a previously proposed $6 billion deal, which was blocked by the Supreme Court last year due to a controversial clause shielding some Sackler family members from future civil liability. This revised settlement, if approved, would mark the largest payout yet involving individuals linked to the opioid crisis.

The deal was brokered by a bipartisan coalition of state attorneys general from across the country, including leaders from California, Texas, New York, Illinois, Virginia, and more. If the court gives the green light, the money will be distributed to states, localities, tribes, and individuals who were part of the litigation.

Most of the payout would occur within the first three years. The Sacklers are set to contribute $1.5 billion initially, with Purdue Pharma providing another $900 million. Additional payments totaling $1.4 billion would follow over the next three years.

This settlement could be a turning point in efforts to hold drugmakers and distributors accountable for their role in an epidemic that has claimed more than half a million American lives.