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.
