Purdue University, Sackler family reach $7.4 billion opioid settlement with U.S. states

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Purdue Pharma and the Sackler family, which controls the company, have agreed to pay $7.4 billion to several U.S. states to resolve liability claims after the opioid maker went bankrupt.

Preliminary agreements with more than a dozen states come after months of mediation between the family and Purdue’s debt. The drugmaker initially filed for bankruptcy in New York federal court in 2019 to deal with hundreds of lawsuits over its role in the opioid crisis.

Last summer, a $6 billion deal the family struck with creditors was blocked by the U.S. Supreme Court. The agreement was designed to protect family members from future lawsuits, which the court said would not be allowed if the family members filed for bankruptcy themselves.

The funds will be used to pay for opioid addiction treatment and recovery programs over the next 15 years, according to a statement from the Texas Attorney General’s Office.

This is a development story.