The attorneys general of 55 U.S. states and territories have reached a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family, over the company’s role in exacerbating the nationwide opioid epidemic through the marketing and sale of their pain medication, OxyContin. The settlement will resolve ongoing litigation against Purdue and the Sacklers, protect them from future civil liabilities, and could help the company win court approval for bankruptcy reorganization.
The Sacklers will be personally responsible for around $6.5 billion of the $7.4 billion settlement, with Purdue paying the remainder. According to Reuters, payouts would begin after Purdue wins “sufficient creditor support” for its Chapter 11 bankruptcy plan, with money going to individuals, state and local governments, and Native American tribes. Per the terms of the settlement, the Sacklers will also cede control of Purdue and be barred from selling opioids in the U.S. going forward.
Alabama’s Attorney General Steve Marshall celebrated the terms of the settlement in an official statement on Monday.
“Today is a testament to our steadfast commitment to providing justice and holding the Sackler family and Purdue Pharma accountable. Our commitment to the first-in-the-nation litigation strategy has positioned Alabama to bring over three quarters of a billion dollars back to our state—a state that the opioid crisis has disproportionally impacted,” Marshall stated. “It’s important for local communities to take swift action to sign on to the agreement to ensure they receive the opportunity to put that money to work for our Alabama citizens in need. Together with prudent decision making, we can make a difference for our communities and law enforcement who desperately need the support.”
According to Marshall’s office, Alabama’s state and local governments will receive as much as $75 million for the settlement over the next 15 years, with most of those funds being distributed in the first three years. That money will go toward supporting addiction treatment, prevention and recovery in the state.
“Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve the resolution of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days,” the AG’s office added.
Marshall’s office also noted that, including the Purdue settlement, Alabama has now obtained settlements committing “nearly $730 million in funds from companies that helped fuel the opioid epidemic.”
Alabama is among the states that have been most heavily impacted by the opioid crisis, with one of the highest opioid prescription rates in the country. According to the Alabama Department of Mental Health, 6,307 Alabamians died from overdoses between 2015 and 2021, with the majority of overdoses attributed to opioids. In 2021 alone, opioids caused 981 overdose deaths in Alabama, accounting for 70 percent of all overdose deaths in the state.
