California Attorney General Rob Bonta has announced a significant settlement with the Sackler family and Purdue Pharma L.P. amounting to $7.4 billion. This agreement addresses the role of the Sacklers and Purdue in exacerbating the opioid crisis through their aggressive marketing of opioid products.
Attorney General Bonta stated, "The opioid epidemic has ravaged communities in California and across the country, forever changing society as we know it. My office has been committed to fighting this crisis, and today, we are holding accountable two of the worst perpetrators: Purdue Pharma and the Sackler Family."
The settlement will see the Sackler family pay up to $6.5 billion over 15 years, while Purdue will contribute nearly $900 million upon court approval. The funds are intended for opioid addiction treatment, prevention, and recovery programs nationwide.
If approved by the United States Bankruptcy Court for the Southern District of New York, this proposed settlement will be part of a comprehensive bankruptcy plan. A significant portion of these funds is expected to be distributed within three years following confirmation of a bankruptcy plan.
In addition to financial reparations, this settlement ends the Sacklers' control over Purdue and prohibits them from selling opioids in the U.S. A board of trustees will determine Purdue's future operations under continued oversight.
Furthermore, if approved, more than 30 million documents related to Purdue's opioid business will be made public as part of this agreement.
The settlement follows a previous bankruptcy plan invalidated by the Supreme Court in June 2024 due to unauthorized liability shields under the Bankruptcy Code.
Members involved in securing this agreement include attorneys general from multiple states alongside Attorney General Bonta.