Purdue Pharma and the Sackler family's involvement in the opioid market has officially come to an end. In a major development toward accountability in the opioid crisis, Attorney General Letitia James announced a comprehensive $7.4 billion settlement supported by all U.S. states and territories. This agreement, outlined in a statement issued by the New York Attorney General's office, marks the end of the Sackler family's control over Purdue Pharma and permanently prohibits them from selling opioids in the United States.
The substantial settlement provides direct funding to support opioid addiction recovery and prevention efforts, addressing the nationwide rise in overdose deaths. New York is expected to receive up to $250 million to enhance its abatement initiatives. "For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses," Attorney General James said in a press release, identifying the family as central to the crisis. In 2023 alone, opioid overdoses claimed the lives of more than 5,000 New Yorkers, highlighting the urgent need for the settlement.
Following approval from the bankruptcy court, settlement funds will begin reaching communities impacted by the opioid crisis. According to the agreement, Purdue Pharma will make an initial payment of approximately $900 million in early 2026, while the Sackler family will contribute an additional $1.5 billion. Further payments are scheduled over time, with New York slated to receive up to $250 million in total.
This settlement is part of a broader effort. Attorney General James has consistently pursued accountability, securing over $3 billion for New York from other companies linked to the opioid crisis. These include major entities such as Johnson & Johnson, Teva Pharmaceuticals, CVS, Walgreens, Walmart, and consulting firm McKinsey & Company. The ongoing collaboration among 55 attorneys general continues to advance this initiative, shifting the focus toward recovery and prevention instead of prolonged litigation and continued harm, according to a recent press release.
