Tennessee Attorney General Jonathan Skrmetti announced a $7.4 billion settlement with Purdue Pharma and the Sackler family, achieved by a bipartisan coalition of states. The settlement addresses the company's role in the opioid crisis, which has led to widespread addiction and overdose deaths across the United States.
The agreement ends the Sackler family's control over Purdue Pharma and prohibits them from selling opioids in the U.S. It also provides funding for opioid addiction treatment, prevention, and recovery programs over 15 years. Tennessee expects to receive more than $90 million from this settlement.
Attorney General Skrmetti emphasized Purdue Pharma's responsibility for the ongoing opioid epidemic: “Purdue Pharma is uniquely culpable for the opioid epidemic that continues to ravage our country.” He acknowledged that while this resolution cannot undo past damage, it will support efforts to combat opioid abuse in Tennessee communities.
The settlement follows a previous multistate agreement overturned by the U.S. Supreme Court in June 2024. The new deal requires contributions from members of the Sackler family totaling up to $6.5 billion, with an initial payment of $1.5 billion.
A board of trustees chosen by participating states will decide on Purdue's future operations under continued oversight. The company is barred from lobbying or marketing opioids as part of this settlement.
The eight heirs of Purdue founders Raymond and Mortimer Sackler involved include Richard, Kathe, Mortimer Jr., Ilene, David, Theresa Sackler; along with estates of Jonathan and Beverly Sackler and their associated trusts and advisers.
This settlement was secured with cooperation from attorneys general in California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Texas, Vermont, Virginia, West Virginia alongside Tennessee.