Attor­ney Gen­er­al Ken Pax­ton and Mul­ti­state Coali­tion Reach $7.4 Bil­lion Set­tle­ment With Pur­due Phar­ma for Its Role in the Opi­oid Crisis

Attorney General Ken Paxton today announced that all 55 attorneys general, representing all eligible states and U.S. territories, agreed to a $7.4 billion settlement with Purdue Pharma 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 and worsening 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.  

“No person or company, no matter how powerful, is above the law. Purdue Pharma and the Sackler family fueled an opioid epidemic that devastated Texas families and communities,” said Attorney General Paxton. “This $7.4 billion settlement is a major victory in our ongoing fight to ensure Big Pharma pays for the damage it caused and to bring justice to the people of Texas.”

Under the Sacklers’ ownership, Purdue made 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. Texas’s state and local governments will receive as much as $286.6 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 $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 resolve legal claims of 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. 

Including this new settlement, Attorney General Paxton has obtained settlements committing nearly $3.3 billion for Texas from companies that helped fuel the opioid epidemic.