MONTGOMERY, AL – Alabama Attorney General Steve Marshall announced Monday a $7.4 billion nationwide settlement with Purdue Pharma and its owners, the Sackler family, marking one of the largest legal resolutions in the ongoing response to the opioid crisis. The agreement, supported by attorneys general from all 50 states, Washington D.C., and U.S. territories, aims to conclude years of litigation concerning Purdue’s role in marketing opioid medications and the resulting public health crisis.
The settlement ends the Sackler family’s control of Purdue Pharma and permanently bars them from involvement in the manufacture or sale of opioids in the United States. Proceeds from the settlement will be distributed over a 15-year period to states, territories, and local governments to fund opioid addiction treatment, prevention, and recovery services.
Attorney General Marshall emphasized the importance of the outcome for Alabama communities, particularly in light of the state’s disproportionate impact from the opioid epidemic.
The agreement follows the conclusion of a state sign-on period, and attention now turns to local governments across the country. Their participation will be contingent upon final approval by the bankruptcy court, with a hearing scheduled in the coming days. If approved, local governments will be eligible to receive their share of the funding to support efforts on the ground.
Marshall urged Alabama communities to take swift action in joining the agreement to maximize the impact of the resources available. “It’s important for local communities to take swift action to sign on to the agreement to ensure they receive the opportunity to put that money to work for our Alabama citizens in need,” he said. “Together with prudent decision making, we can make a difference for our communities and law enforcement who desperately need the support.”
Under the Sacklers’ ownership, Purdue Pharma marketed opioid products such as OxyContin, which became central to the opioid addiction crisis. The aggressive marketing and widespread distribution of these drugs are widely cited as key contributors to addiction and overdose rates in the U.S.
Including this latest settlement, Alabama has now secured nearly $730 million in funds from multiple companies linked to the opioid epidemic. Previous settlements have involved manufacturers, distributors, and retailers accused of contributing to the public health emergency through the overprescription and supply of opioid medications.
Once finalized, this settlement will be the largest to date involving individuals held directly responsible for the opioid crisis.
