June 23, 2025 | Oakland, CA – MedLegalNews.com – Purdue Pharma opioid settlement negotiations have reached a major milestone. 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.
Bonta Reaffirms Commitment to Justice and Recovery
“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.” This Purdue Pharma opioid settlement underscores California’s ongoing commitment to justice, ensuring accountability and long-term investment in community recovery efforts.
End of Sackler Control and Long-Term Payout Structure
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. The Purdue Pharma opioid settlement marks a historic turning point in how corporate accountability is enforced and how states like California can reinvest in long-term public health solutions.
Initial Payments Front-Loaded in Settlement Agreement
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. These initial payments under the Purdue Pharma opioid settlement are structured to deliver urgent financial relief to states and local governments, allowing them to immediately invest in addiction treatment, prevention programs, and public health infrastructure.
Bankruptcy Approval Still Pending for Finalization
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. As part of the broader Purdue Pharma opioid settlement, this step is critical to unlocking billions in funds that will support addiction services and ensure accountability across jurisdictions.
Structural Reforms to Purdue and Industry Oversight
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. As part of the Purdue Pharma opioid settlement, these structural reforms are intended to prevent future abuse, reinforce industry oversight, and serve as a model for accountability in pharmaceutical governance.
National Coalition Drives Accountability
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.
This widespread support for the Purdue Pharma opioid settlement reflects a unified national stance on corporate accountability and a collective commitment to deliver justice and funding for addiction recovery across affected communities.
For more information, read the official press release from the California Department of Justice here.
As billions flow into communities from the Purdue Pharma opioid settlement, it’s critical to track how these funds are used and advocate for transparent, effective recovery programs.
Subscribe to MedLegalNews.com for ongoing coverage of settlement distributions, legal reforms, and how California is investing in solutions that save lives and rebuild trust.
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FAQs
1. What is the Purdue Pharma opioid settlement and why is it significant?
The Purdue Pharma opioid settlement is a $7.4 billion agreement involving Purdue Pharma and its owners, the Sackler family, aimed at resolving nationwide litigation over their role in the opioid crisis. This settlement is significant because it ends the Sacklers’ control over the company and allocates billions toward addiction treatment, prevention, and recovery across affected communities.
2. How much will California receive from the Purdue Pharma opioid settlement?
California is expected to receive up to $440 million over the next 15 years from the Purdue Pharma opioid settlement. These funds will support addiction recovery programs, public health initiatives, and efforts to combat the long-term effects of the opioid epidemic across the state.
3. Does the Purdue Pharma opioid settlement prevent the Sacklers from selling opioids in the future?
Yes. A key component of the Purdue Pharma opioid settlement is the permanent removal of the Sackler family from control of the company. They are barred from selling opioids in the United States, ensuring they cannot profit from these substances moving forward.