Purdue Pharma Reaches $7.4 Billion Settlement with Multiple States for Opioid Crisis

Supreme Court Ruling Leads to Revised Agreement with Sackler Family

Purdue Pharma and members of the Sackler family will pay $7.4 billion to resolve claims related to their role in the opioid crisis following a January 25, 2025 settlement announcement. Tennessee Attorney General Jonathan Skrmetti confirmed the state’s portion will exceed $90 million, distributed over 15 years. The agreement, reached after the Supreme Court rejected a previous settlement in June 2024, represents the most significant individual contribution to date addressing the opioid epidemic. Fifteen states participated in securing the bipartisan agreement, which eliminates automatic liability protection for the Sackler family.

5 Key Points

• The $7.4 billion settlement will fund opioid addiction treatment, prevention, and recovery programs.
• Tennessee expects to receive over $90 million from the agreement.
• Funding distribution will occur over 15 years to states, local governments, and affected individuals.
• The Supreme Court invalidated a previous June 2024 settlement that provided automatic liability shields.
• Fifteen state attorneys general collaborated to secure the agreement.

Settlement Details Mark Shift in Opioid Crisis Accountability

The $7.4 billion settlement announced by Tennessee Attorney General Jonathan Skrmetti represents a significant change in how Purdue Pharma and the Sackler family will address their role in the opioid crisis. Unlike the June 2024 agreement, this settlement eliminates automatic liability shields for the Sackler family members. The funds will support direct community intervention through addiction treatment, prevention programs, and recovery services across participating states. Local governments and affected individuals who previously filed lawsuits against either Purdue Pharma or the Sackler family will receive portions of the settlement over a 15-year distribution period.

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State-Level Impact and Distribution

Tennessee’s projected $90 million share of the settlement highlights the state-specific approach to addressing opioid addiction impacts. The Tennessee Attorney General’s office confirmed the funds will flow directly to communities most affected by the crisis. The bipartisan coalition of fifteen state attorneys general, including representatives from Tennessee, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Texas, Vermont, Virginia, and West Virginia, collaborated to structure the agreement. The distribution model ensures sustained funding for addiction services through 2040, allowing communities to develop long-term recovery programs.

Legal Framework and Supreme Court Influence

The U.S. Supreme Court’s decision to overturn the June 2024 settlement created the foundation for this revised agreement. The Court determined the Sackler family could not receive automatic protection from future liability claims, forcing a restructuring of the settlement terms. The new agreement builds on “consensual releases in exchange for payments” from the Sackler family, creating a more direct relationship between compensation and legal protection. This framework establishes a precedent for future opioid crisis settlements involving corporate entities and their leadership.