NY to get up to $250M from $7.4B Purdue/Sackler settlement

Stamford-based Purdue Pharma and the Sackler Family that controlled it have settled a lawsuit filed by the attorneys general of 15 states over the opioid crisis and their actions that were at the heart of it. The lawsuit took the position that Purdue, under the Sacklers’ leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country.

New York Attorney General Letitia James worked with the attorneys general from California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia on the lawsuit and settlement. James announced the settlement on Jan. 23.

According to James, the $7.4 billion settlement in principle is the nation’s largest settlement to date with individuals responsible for contributing to the opioid crisis. A previous multi-state settlement with the Sacklers and Purdue was overturned by the US. Supreme Court in June 2024.

According to the settlement, the Sackler family will pay up to $6.5 billion over 15 years, with Purdue paying about $900 million. A significant amount of the settlement funds will be distributed in the first three years, with $1.5 billion paid out in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. New York will receive up to $250 million from the settlement, which will support opioid treatment and recovery programs throughout the state.

The settlement also ends the Sacklers’ control of Purdue. A board of trustees selected by participating states in consultation with the other creditors will determine the future of the company. Purdue will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids under the settlement.

“The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling the opioid epidemic,” James said. “While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal. The Sacklers no longer have control of Purdue and will never be allowed to sell opioids in the United States again. I will continue to go after the companies that caused the opioid epidemic and fight to get justice for those who have suffered.”

West Virginia Attorney General John B. McCuskey said, “While litigation and settlements will not bring back the lives lost from the opioid epidemic, our hope is that the money from all the settlements through the years from manufacturers, pharmacies, distributors, and others will start the rebuilding process from one of the darkest chapters in our history.

“West Virginia has suffered enough from the opioid epidemic, and we will continue to fight for the communities that have been shattered by this scourge. We have held those responsible accountable; our fight now is to see to it that that future generations will have the tools they need to prevent this crisis from ever happening again.”