$7.4 billion Purdue Pharma, Sackler family opioid settlement now in effect

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This illustration image shows tablets of opioid painkiller Oxycodone delivered on medical prescription taken on September 18, 2019 in Washington,DC. - Millions of Americans sank into addiction after using potent opioid painkillers that the companies

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OAKLAND, Calif. - After nearly a decade of work, a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family, has become legally effective. 

Purdue Pharmaceutical, for its role in fueling the opioid epidemic, was the subject of a multistate investigation launched in 2016. California sued the company and members of the Sackler family in 2019. The settlement bars the Sacklers from selling opioids in the United States, and delivers funds for addiction treatment, prevention, and recovery to communities across the country for the next 15 years.

The Golden State

Local perspective:

California is expected to receive over $440 million as part of the settlement, bringing the state’s total opioid settlement funds to $4.65 billion.

"With the settlement now in effect, California will, at long last, receive critical funding from Purdue Pharma and the Sackler family to help address the opioid crisis," Bonta said in a press release. "Our work doesn’t end here. We will continue holding those responsible for this crisis to account."

As a result of the massive litigation against the company, Purdue filed for bankruptcy in 2019. The attorneys general investigating the company took a lead role in the bankruptcy proceedings, including negotiating a new settlement that obtained more money from the Sacklers after the U.S. Supreme Court in 2024 invalidated provisions in a prior settlement. 

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$5.5B judgment against Purdue Pharma paves way for opioid deal

Purdue Pharma must pay $5.5 billion in penalties after a sentencing tied to its role in fueling the opioid crisis through doctor payoffs and misleading federal regulators.

In addition to funding treatment, prevention, and recovery efforts across the country, settlement funds will go to individual victims and other groups who filed claims in the bankruptcy proceedings.

Timelines

Dig deeper:

Fifty-five attorneys general — representing all eligible states and U.S. territories signed onto the settlement in June, 2025.

Most of the funds will be distributed over the next three years. The Sackler family is paying over $1.5 billion on May 1, followed by $500 million in May, 2027, and May, 2028, as well as $400 million in May, 2029. 

Purdue Pharmaceutical is paying $900 million immediately.

The settlement also dictates that, effective immediately, Purdue’s manufacturing operations will transfer to Knoa Pharma LLC. That company will be overseen by a board of directors with no connection to Purdue.The terms of the settlement Bar Knoa from marketing opioids and provides for an independent monitor to ensure it provides medicines safely.

The settlement also requires Purdue and the Sackler family to make public more than 30 million documents related to their opioid business.