(Montgomery, Ala) – Attorney General Steve Marshall today announced a nationwide $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The Sackler family has informed the 55 attorneys general, representing all eligible states and U.S. territories, of the plan to proceed with the settlement, which would resolve litigation against Purdue and the Sacklers for their role in creating and worsening the opioid crisis across the country. 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.
“Today is a testament to our steadfast commitment to providing justice and holding the Sackler family and Purdue Pharma accountable. Our commitment to the first-in-the-nation litigation strategy has positioned Alabama to bring over three quarters of a billion dollars back to our state—a state that the opioid crisis has disproportionally impacted,” Attorney General Marshall stated. “It’s important for local communities to take swift action to sign on to the agreement to ensure they receive the opportunity to put that money to work for our Alabama citizens in need. Together with prudent decision making, we can make a difference for our communities and law enforcement who desperately need the support.”
Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities across the country will receive direct funding over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis. Alabama’s state and local governments will receive as much as $75 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.
Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve the resolution of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days.
Including this new settlement, Alabama has obtained settlements committing nearly $730 million in funds from companies that helped fuel the opioid epidemic.
Attorney General Marshall is joined in securing this settlement in principle by the attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin, Wyoming.
