Hartford, CT – Attorney General William Tong announced today a $7.4 billion settlement in principle between states, victims, and the Sackler family’s Purdue Pharma. This landmark agreement builds on previous efforts to hold Purdue and the Sacklers accountable for their pivotal role in the opioid crisis. Adding $1.4 billion to a prior settlement invalidated by the U.S. Supreme Court in June 2024, this agreement accelerates critical aid for opioid treatment, recovery, and prevention efforts.

Connecticut joined forces with New York, California, Colorado, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and West Virginia to lead bipartisan negotiations culminating in this settlement. The participating states now seek approval from remaining states, municipalities, and both bankruptcy and state courts to finalize the agreement.

Attorney General Tong: “Justice and Accountability”

Describing the Sackler family as “cruel billionaires who believed they were above the law,” Attorney General Tong underscored the historic nature of this achievement. “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,” Tong stated. He emphasized the fight’s focus on justice for the families and victims devastated by the opioid epidemic, adding that the settlement will direct funds toward saving lives through opioid treatment and prevention. Connecticut is expected to receive $64 million from this agreement over eight years, with nearly $16 million delivered in the first year alone.

Expanded Accountability and Transparency

This agreement is the culmination of years of litigation, beginning with Connecticut’s 2019 lawsuit against Purdue Pharma and individual members of the Sackler family. That suit alleged that the Sacklers orchestrated a campaign of deceit, pushing patients toward opioids to reap massive profits, even as addiction and overdose rates soared. The state later expanded the suit to allege fraudulent transfers of wealth designed to shield the Sacklers from accountability.

The settlement also includes unprecedented measures to end Purdue’s control over the opioid market:

• Purdue’s Operations: Purdue will be overseen by a court-approved monitor, barred from marketing or lobbying for opioids, and ultimately governed by a board of trustees chosen by states and creditors.
• Document Transparency: More than 30 million documents related to Purdue’s opioid business—including privileged communications—will be made public, shedding light on the Sacklers’ role in the crisis. These documents will provide a detailed record of the company’s compliance with prior judgments and the origins of the opioid epidemic.
• Permanent Exit from the Opioid Industry: The Sacklers will be barred from selling opioids in the United States, ensuring no further harm from their actions.

Immediate Financial Relief

A significant portion of the settlement funds will be distributed in the first three years:

• $1.5 billion in the first payment
• $500 million in the second and third years
• $400 million in the fourth year

Connecticut will prioritize these funds for lifesaving initiatives. Attorney General Tong announced plans to establish a trust for survivors and the families of victims, ensuring direct and meaningful support. Public Act 22-48 will guide the oversight and allocation of opioid settlement dollars in the state.

A Long Legal Battle

The road to this settlement has been long and complex. In 2019, Purdue filed for bankruptcy to shield itself and the Sackler family from mounting litigation. A 2021 bankruptcy court ruling approved a controversial $4.3 billion settlement that granted lifetime immunity to the Sacklers, effectively blocking states like Connecticut from pursuing claims. However, Connecticut and several other states successfully challenged the ruling, with the U.S. District Court vacating the bankruptcy order.

Negotiations in 2022 resulted in a $6 billion settlement, which was later overturned by the Supreme Court in 2024. This latest agreement not only secures $7.4 billion but also avoids granting the Sacklers blanket immunity, marking a significant victory for victims and survivors.

Commissioner Navarretta: “A Step Forward in Healing Communities”

Connecticut Department of Mental Health and Addiction Services Commissioner Nancy Navarretta highlighted the settlement’s importance for recovery efforts: “This settlement holds Purdue Pharma and the Sackler family accountable for their role in this public health crisis while providing critical resources to expand treatment and recovery efforts. These funds will help save lives, support families, and strengthen communities.”

Broader Impact

This settlement is part of Connecticut’s broader effort to combat the opioid epidemic, which has secured over $50 billion nationwide for treatment, prevention, and recovery. Connecticut alone has received $600 million in opioid settlement funds, with oversight provided by the state’s Opioid Settlement Advisory Committee. Comprised of health professionals, individuals with lived experience, and community leaders, the committee ensures that funds are allocated effectively and transparently.

👇👇👇IF YOU NEED A LAWYER CONTACT US TODAY👇👇👇