In a collective display of legal might, all 55 attorneys general across states and U.S. territories have agreed to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family, according to an announcement by Attorney General Kris Mayes. The settlement aims to address the extensive litigation against the company and its owners for their role in perpetuating the opioid crisis that has wrought havoc nationwide. As part of the agreement, local governments will now be invited to join the settlement following bankruptcy court proceedings.
This settlement channels a substantial flow of funds towards battling the drug crisis, with Attorney General Mayes remarking, "I'm proud to secure another hundred million dollars to fight the opioid crisis in Arizona – and from some of the worst offenders, who worsened the opioid crisis across the country for their personal profit," in a statement obtained by AZAG. Arizona itself stands to receive up to $108 million over 15 years, fortifying its war chest against addiction with totals exceeding $1.1 billion garnered from previous settlements with pharma companies linked to the opioid epidemic. It marks the dismantling of the Sacklers' control over Purdue as well their ability to sell opioids in the U.S., redirecting resources to support treatment, prevention, and recovery efforts.
Most of the settlement funds are slated for distribution within the first three years. The initial payment sees the Sacklers contributing $1.5 billion, and Purdue Pharma chipping in approximately $900 million. Thereafter, annual payments of $500 million will continue for the next two years, culminating in a $400 million payment in the third year. This settlement represents the largest of its kind linked to individuals and their role in a public health crisis of this magnitude.
The path to distributing these funds requires a collaborative effort, involving resolving legal claims by state and local governments. As the local governments start the sign-on process, the success of this legal and financial remedy hinges on approval by a bankruptcy court, with a hearing on this matter scheduled soon. This settlement, secured by Attorney General Mayes alongside the collected force of attorneys general which includes Alabama, Alaska, and California among others, charts a course towards restitution and reflects a nation grappling with the corporate complicity in a public health emergency.
