A bipartisan coalition of states has announced a $7.4 billion settlement in principle with Purdue Pharma and its owners, the Sackler family, marking the largest settlement yet with the family accused of fueling the U.S. opioid epidemic.

The agreement, revealed Thursday, ends the Sacklers' control of Purdue and their ability to sell opioids in the U.S., according to officials involved in the deal. The settlement aims to provide substantial funding for opioid crisis relief efforts, including addiction treatment and overdose rescue medicines.

A Historic Settlement

Under the terms of the settlement, the Sackler family will pay $6.5 billion, while Purdue will contribute nearly $900 million upon court approval. Connecticut Attorney General William Tong called the agreement a major victory in holding the Sacklers accountable.

"This story is about a family of cruel billionaires who believed they were above the law," Tong said. "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."

New York Attorney General Letitia James emphasized that $1.5 billion from the Sacklers will be paid immediately, with $250 million directed to New York alone. She noted this is the largest single settlement her office has secured, adding it to the $3 billion already collected from opioid manufacturers and distributors.

Supreme Court Overturn and Mediation

The new settlement comes after the U.S. Supreme Court invalidated Purdue’s prior $6 billion bankruptcy deal in June. The earlier plan, which included liability protections for some Sackler family members, was struck down amid widespread criticism.

Following the decision, states engaged in intensive mediation to craft a new agreement. The settlement must still be approved by state courts, municipalities, and the bankruptcy court handling Purdue's reorganization.

Purdue’s Role in the Opioid Crisis

Purdue Pharma, under Sackler family leadership, developed and aggressively marketed opioid medications, including OxyContin. The company has been accused of downplaying addiction risks while driving widespread use, contributing to a public health crisis that has claimed hundreds of thousands of lives.

The company expressed satisfaction with the settlement’s potential to address the opioid crisis.

"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," a Purdue spokesperson said.

What’s Next

With the settlement in principle, all parties are finalizing details of Purdue’s new reorganization plan. If approved, the funds will be distributed to states, municipalities, and victims to address the ongoing impact of the opioid epidemic.