June 23, 2025 | Oakland, CA — MedLegalNews.com – 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 Purdue Pharma opioid 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. With the state sign-on period now complete, the next step is for local governments across the country to join the settlement, pending 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.
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 Share and Payment Timeline
California’s state and local governments will receive as much as $440 million from this settlement over the next 15 years. The government will distribute most of the settlement funds within the first three years. The Sacklers will pay $1.5 billion Purdue will contribute about $900 million in the first round of payments. The Sacklers will then pay $500 million after one year, another $500 million after two years, and $400 million after three years.
Bankruptcy Approval Still Pending for Finalization
As with previous opioid settlements, state and local governments will resolve their legal claims through the Purdue and Sackler agreement. The bankruptcy court must approve the settlement before local governments can sign on and vote, with a hearing scheduled in the coming days.
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.
National Coalition Drives Accountability
In a unified effort, attorneys general from all eligible U.S. states and territories—including Alabama, Alaska, American Samoa, Arizona, Arkansas, and others—joined Attorney General Bonta in securing this settlement in principle.
Subscribe to MedLegalNews.com for updates on opioid litigation, settlement distributions, and public health funding impacting California communities.
📚 Read More from MedLegalNews.com:
- California Labor Commissioner Announces Second Year of Workers’ Rights Enforcement Grant Program
- Farmworker Protection Legislation Advances in California Assembly
- DWC Tightens Employer Insurance Compliance Audits in 2025
- California Lawmakers Weigh Expansion of Mental Health Coverage in Workers’ Comp
- Assembly Bill 1870 Expands Employer Obligations for Workers’ Compensation Notices