Purdue Pharma, Sackler families boost contribution in opioid settlement to $7.4 billion

(NEW YORK) -- The company and once-prominent family behind the drug OxyContin agreed Thursday to increase their financial contribution to resolve mass opioid litigation.

The Sacklers and Purdue Pharma boosted their settlement contribution to $7.4 billion after the U.S. Supreme Court overturned a prior settlement in June 2024. If approved, the new plan would end the costliest corporate bankruptcy resulting from the U.S. opioid crisis.

Purdue, under the leadership of the Sackler families, invented, manufactured and aggressively marketed opioid products for decades, according to the lawsuits. States and cities across the country said it fueled waves of addiction and overdose deaths.

The pharmaceutical company introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for chapter 11 bankruptcy in 2019 after the company was sued thousands of times.

Under the settlement terms, the Sacklers' control of Purdue Pharma ends. The $7.4 billion will go directly to communities across the U.S. -- including states, counties, cities and territories -- over the next 15 years to support opioid addiction treatment, prevention, and recovery programs.

"Families throughout New York and across the nation are suffering from the immense pain and loss wrought by the opioid crisis," said New York Attorney General Letitia James, whose office helped negotiate the settlement agreement.

"The Sackler family relentlessly pursued profit at the expense of vulnerable patients, and played a critical role in starting and fueling in the opioid epidemic," she continued. "While no amount of money will ever fully repair the damage they caused, this massive influx of funds will bring resources to communities in need so that we can heal."

Purdue Pharma planned to exit bankruptcy last year under terms that gave the Sacklers a full release from all civil opioid claims even though they themselves were not declaring bankruptcy. In return, the Sacklers agreed to pay $6 billion.

The Supreme Court rejected the attempt by the Sacklers to use Purdue Pharma's bankruptcy to shield themselves from liability.

Under the new terms, a significant amount of the settlement funds will be distributed in the first three years, with the Sacklers paying $1.5 billion and Purdue paying nearly $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.

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.

"This story is about a family of cruel billionaires who believed they were above the law, pursued by states who never backed down," Connecticut Attorney General William Tong said Thursday. "Today, we are forcing Purdue Pharma and the Sackler family to pay $7.4 billion for their role in igniting one of the most devastating public health crises in American history."

Purdue Pharma said in a statement to ABC News, "We are extremely pleased that a new agreement has been reached that will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver treatment and overdose rescue medicines that will save lives. We have worked intensely with our creditors for months in mediation, and we are now focused on finalizing the details of a new Plan of Reorganization, which we look forward to presenting to the bankruptcy court."

Copyright © 2025, ABC Audio. All rights reserved.