Attorney General Bonta Signs On to $7.4 Billion Purdue Settlement

California will receive up to $440 million  

OAKLAND – Attorney General Bonta today announced that 55 attorneys general, representing all eligible states and U.S. territories, agreed to sign on to a $7.4 billion settlement with Purdue Pharma L.P. and its owners, the Sackler family. The Sackler family has also informed the attorneys general of its plan to proceed with the settlement, which would resolve litigation against Purdue and the Sacklers for their role in creating the national opioid crisis. Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.   

"The opioid epidemic has ravaged communities in California and across the country. The companies and individuals who fueled this crisis must be held accountable. With today’s announcement, the California Department of Justice is continuing to deliver results for our communities,” said Attorney General Bonta. “By holding Purdue Pharma and the Sackler family accountable for their role in fueling the opioid epidemic, we're bringing much-needed funds for addiction treatment, prevention, and recovery to those impacted by this crisis. The California Department of Justice will continue to fight for the health and wellbeing of all Californians."

Under the Sacklers’ leadership, Purdue sold and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis. California’s state and local governments will receive as much as $440 million from this settlement over the next 15 years.  

Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion and Purdue will pay roughly $900 million in the first payment, followed by the Sacklers paying $500 million after one year, an additional $500 million after two years, and $400 million after three years. 

Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve 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 settlement also reflects the end of the Sacklers’ control of Purdue and bars them from selling opioids in the United States. 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. 

Including the Purdue/Sackler settlement, California has obtained settlements committing up to $4.6 billion in funds from companies that helped fuel the opioid epidemic.  

Attorney General Bonta is joined in securing this settlement in principle by the attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, 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.