(WNY News Now) – New York Attorney General Letitia James has announced a historic $7.4 billion settlement with Purdue Pharma and the Sackler family, now backed by every U.S. state and territory.
NEW YORK — New York Attorney General Letitia James revealed Monday that all 55 eligible U.S. states and territories have agreed to a $7.4 billion settlement in principle with Purdue Pharma and its former owners, the Sackler family, for their role in fueling the nationwide opioid crisis.
The agreement, initially secured by Attorney General James in January, will end the Sacklers’ control of Purdue Pharma and prohibit them from marketing or selling opioids in the U.S. Under the terms of the deal, funds will be distributed over the next 15 years to support addiction prevention, treatment, and recovery efforts.
New York is expected to receive up to $250 million from this settlement, bringing the total amount Attorney General James has secured for the state to more than $3 billion.
“I am proud to have helped secure the support of every state and territory in the country for this plan to hold the Sackler family accountable,” Attorney General James. “For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses. While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis. I will continue to work to deliver justice for all those affected by opioid addiction.”
The settlement includes $1.5 billion to be paid by the Sacklers and $900 million from Purdue in the first disbursement, anticipated in early 2026 pending court approval. Additional payments totaling $1.4 billion will follow over the subsequent three years.
Like prior opioid-related settlements, this agreement depends on the resolution of legal claims and approval from the bankruptcy court. Funds will be distributed directly to local governments, impacted individuals, and parties who previously filed claims.
The opioid crisis continues to affect communities across the U.S., including New York, where over 5,000 overdose deaths were recorded in 2023. Purdue Pharma, under Sackler leadership, played a central role in the crisis by aggressively marketing opioid medications.
With the addition of up to $250 million from this settlement, Attorney General James has secured New York state more than $3 billion from opioid manufacturers and distributors for their role in the opioid epidemic. These include Mylan, Indivior, Amneal Pharmaceuticals, Hikma Pharmaceuticals, Teva Pharmaceuticals, Johnson & Johnson, Mallinckrodt, Allergan, Endo, McKesson, Cardinal Health, and Amerisource Bergen. Attorney General James has also led multistate coalitions in reaching settlements for billions of dollars with CVS, Walgreens, and Walmart for their roles in failing to properly regulate opioid prescriptions. Additionally, Attorney General James, co-led with a bipartisan coalition of states in securing settlements with consulting firm McKinsey & Company and the marketing firm Publicis Health for their role in fueling the opioid crisis.
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