Purdue Pharma Gains Widespread State Backing for $7.4 Billion Opioid Crisis Settlement

Purdue Pharma has secured the support of attorneys general from 55 U.S. states and territories for its proposed $7.4 billion opioid settlement, a major step toward finalizing its bankruptcy reorganization. The deal is designed to resolve thousands of lawsuits alleging the company and its owners, the Sackler family, played a central role in fueling the national opioid addiction crisis through their aggressive marketing of OxyContin.

The agreement, first outlined in January 2025, includes $6.5 billion contributed by the Sacklers and $900 million from Purdue itself. Settlement funds will be distributed to individuals, state and local governments, and Native American tribes to support addiction recovery efforts and other community impacts. As part of the agreement, the Sacklers will relinquish control of the company.

New York Attorney General Letitia James, one of the key architects of the deal, emphasized that while the funds cannot undo the damage, they will support critical intervention and recovery services. Notably, Oklahoma—having reached its own $270 million settlement in 2019—did not join the current agreement.

This marks a significant legal and financial milestone in the long-standing litigation surrounding the opioid epidemic, which has claimed over 850,000 lives in the U.S. since 1999. The settlement still requires creditor approval to move forward under Purdue’s Chapter 11 plan.