Purdue/Sackler $7.4 Billion Opioid Settlement Goes into Effect

LANSING — Michigan Attorney General Dana Nessel today announced that a $7.4 billion settlement reached with Purdue Pharma and its owners, the Sackler family, has become legally effective, capping nearly a decade of work by attorneys general from across the country in pursuing investigations and litigation over Purdue’s and the Sacklers’ role in fueling the opioid crisis. The attorneys general launched a multistate investigation of Purdue in 2016.

After Purdue filed bankruptcy in September 2019 in light of massive litigation against it, the attorneys general took a lead role in the bankruptcy proceedings, including negotiating a new settlement that obtained more money from the Sacklers after the Supreme Court in June 2024 invalidated provisions in a prior settlement. The settlement gives funds to communities across the country, as well as individual victims and other groups who filed claims in the bankruptcy proceedings.

“This long-awaited settlement will undoubtedly help save lives,” said Attorney General Nessel. “Since I took office, we have secured $1.8 billion to bolster intervention services and treatment across the state. We are already seeing significant progress in combating the opioid crisis. This funding will only further provide support for families seeking healing, while ensuring that Purdue Pharma and the Sackler family are held accountable for the devastation they have caused.”

Fifty-five attorneys general representing all eligible U.S. states and territories previously signed onto the settlement. It resolves litigation against Purdue and the Sacklers for producing and aggressively marketing opioids in the United States, fueling the largest drug crisis in the country’s history.

The settlement permanently bars the Sacklers from selling opioids in the U.S. and delivers funds for addiction treatment, prevention, and recovery to communities across the country over the next 15 years. Michigan’s state and local governments are expected to receive $154 million from the settlement.

Most settlement funds will be distributed in the first three years. The Sacklers are paying more than $1.5 billion today, followed by approximately an additional $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Additionally, Purdue is paying approximately $900 million today.

The settlement also means that Purdue’s manufacturing operations transfer effective today to Knoa Pharma LLC, which will be overseen by a board of directors who had no connection to Purdue. The settlement prevents Knoa from marketing opioids and provides for an independent monitor to ensure it provides these medicines in the safest possible manner that limits the risk of diversion.

The settlement also provides Purdue and the Sacklers will make public more than 30 million documents related to their opioid business.

Since taking office in 2019, Attorney General Nessel has focused intently on combating the opioid epidemic and holding accountable those responsible for creating and fueling the crisis, resulting in over $1.8 billion to Michigan governments through settlements. The money is distributed to the state and local units of government for opioid use disorder treatment and remediation.

Analysis of provisional data from the Michigan Department of Health and Human Services (MDHHS) indicates a 34% reduction in overdose deaths between 2023 and 2024 – about 1,000 fewer deaths. This continued progress reflects the impact of sustained, strategic investment in prevention, treatment, recovery, and harm-reduction efforts – many of which are made possible through additional funding received as a result of Michigan’s participation in the national opioid settlements.

Attorney General Nessel is joined in reaching the settlement by the attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Guam, Hawai’i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

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