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Attorney General Tong Announces Purdue Pharma and Sackler Family to Pay $7.4 Billion to Victims, Survivors and States in Settlement in Principle

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Attorney General William Tong

01/23/2025

Attorney General Tong Announces Purdue Pharma and Sackler Family to Pay $7.4 Billion to Victims, Survivors and States in Settlement in Principle

Adds $1.4 Billion, Frontloads Aid to States to Fund Opioid Treatment and Recovery Following Supreme Court Decision

(Hartford, CT) -- Attorney General William Tong today announced a $7.4 billion settlement in principle between states, victims and members of the Sackler family and their company Purdue Pharma, Inc. (Purdue) for their role in the opioid crisis. The settlement in principle adds $1.4 billion more than the prior settlement invalidated by the U.S. Supreme Court in June 2024, while also accelerating aid to states and victims to fund opioid treatment and recovery.

Connecticut, along with New York, California, Colorado, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia led the bipartisan negotiating team announcing today’s settlement in principle.

The states have been engaged in active mediation since the United States Supreme Court overturned a prior $6 billion settlement. The negotiating states will now seek sign-on from the remaining states and municipalities who have sued, as well as approval from both bankruptcy and state courts.

“This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down. Today, we are forcing Purdue Pharma and the Sackler family to pay $7.4 billion for their role in igniting one of the most devastating public health crises in American history. This is $1.4 billion more than the settlement reached in 2022, and $3.1 billion more than the settlement Connecticut rejected in 2021. I have said since day one that this fight has been about justice and accountability for the hundreds of thousands of victims and families wrecked by the opioid epidemic. There will never be enough justice or dollars to restore those families or right this terrible wrong. I will continue to insist that Connecticut’s settlement funds be used to save lives through opioid treatment and prevention, including direct relief to victims and their families,” said Attorney General Tong.

"This settlement is a significant step forward in addressing the immense harm caused by the opioid epidemic," said Connecticut Department of Mental Health and Addiction Services Commissioner Nancy Navarretta. "This settlement holds Purdue Pharma and the Sackler family accountable for their role in this public health crisis while providing our state with critical resources to expand treatment and recovery efforts. These funds will help save lives, support families, and strengthen communities. Our commitment remains resolute as we work to provide the care and resources needed to help individuals, families, and loved ones recover and rebuild their lives."

Connecticut first filed suit against Purdue and individual members of the Sackler family in 2019, alleging that the company and family peddled a series of falsehoods to push patients toward its opioids, reaping massive profits while opioid addiction skyrocketed. Connecticut expanded and amended that suit later in 2019 to add additional defendants and allegations, including the fraudulent transfer of hundreds of millions of dollars from Purdue Pharma to the Sacklers to shield their wealth from accountability.

Purdue Pharma filed for bankruptcy in September 2019. In 2021, the bankruptcy court approved an inadequate Purdue bankruptcy plan that granted a lifetime legal shield to the Sackler family, unlawfully blocking states like Connecticut from pursuing claims against the family. The plan required the Sackler family to pay $4.3 billion over nine years to the states, municipalities and plaintiffs that sued the company. California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia objected to and ultimately appealed the plan. The United States Trustee, an arm of the Department of Justice, also appealed.

In December 2021, the U.S. District Court vacated the Purdue bankruptcy order, agreeing with the dissenting states that the bankruptcy court lacked authority to force states to release their claims against the Sackler family.

The District Court decision paved the way for Attorney General Tong and the eight other dissenting states to negotiate a new settlement forcing Purdue and the Sacklers to pay $6 billion to victims, survivors and states, to permanently exit the global opioid business, and to force the Sacklers to reckon face-to-face with victims and survivors at a public hearing.

That $6 billion settlement was later overturned by the U.S. Supreme Court, sending the states back to mediation in an even stronger position.

If approved, the settlement will deliver funds to participating states, local governments, victims, and others who have previously sued the Sacklers or Purdue. A significant amount of the settlement funds will be distributed in the first three years, with $1.5 billion paid out in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. Connecticut will receive approximately $64 million from the settlement over 8 years-- a significant acceleration of funds over the prior settlement which spread payments out over 18 years. The first payments are frontloaded, including nearly $16 million as a first-year payment to accelerate funds for treatment and recovery, and aid to victims.

Attorney General Tong intends to direct a significant portion of these early payments to be used to fund a trust for direct support for survivors of the opioid epidemic, as well as family members of victims and survivors, as was agreed to in the settlement ultimately upended by the Supreme Court. Public Act 22-48, the legislation that set up an oversight process for disbursing opioid settlement dollars, provides for the victims’ fund.

In addition to delivering $7.4 billion to address the opioid crisis, the settlement reflects the end of the Sacklers’ control of Purdue and bars them from selling opioids in the United States. A board of trustees selected by participating states in consultation with the other creditors will determine the future of the company. Purdue will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement.

If approved, the settlement will make public more than 30 million documents related to Purdue and the Sacklers’ opioid business. The document repository will now also contain documents relating to compliance with the 2007 State Attorneys General Consent Judgments, and after six years will make public documents subject to the waiver of privilege.

Members of the Sackler family included in the settlement in principle include the eight heirs of Purdue founders Raymond and Mortimer Sackler who served on the Board of Purdue: Richard, Kathe, Mortimer Jr., Ilene, David, and Theresa Sackler; and the estates of Jonathan and Beverly Sackler. In addition, their associated trusts, advisers, and most of their children and heirs are also included.

Connecticut has led nationwide efforts to secure more than $50 billion nationwide to combat the opioid epidemic, including $600 million for Connecticut alone to support treatment, prevention, and recovery. That money has begun to flow. Connecticut’s Opioid Settlement Advisory Committee, comprised of health professionals, individuals with lived experience, and state and municipal leaders is responsible for allocating and accounting for opioid settlement funds.

Twitter: @AGWilliamTong
Facebook: CT Attorney General
Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov

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