NASHVILLE, Tenn. (WKRN) — A bipartisan coalition of states, including Tennessee, will receive $7.4 billion from Purdue Pharma, Inc. and members of the Sackler family for their “instrumental” role in the crisis. The settlement is the largest to date with respect to individuals’ contributions to the opioid crisis.
A Thursday announcement from the Tennessee Attorney General Jonathan Skrmetti’s office said Tennessee could receive more than $90 million of the settlement. That funding will be delivered “directly” to communities over the next 15 years to support opioid addiction treatment, prevention and recovery programs. Settlement funding would be delivered to participating states, local governments, affected individuals and others who previously sued either the Sackler family or Purdue Pharma, Inc.
The Sackler family will contribute up to $6.5 billion to the settlement, with $1.5 billion being paid in the first payment. A “significant amount” of the funds is expected to be paid in the first three years.
Additionally, Skrmetti’s office said the settlement ends the Sackler family’s control of Purdue Pharma and their ability to sell opioids in the United States. A board of trustees, selected by participating states in consultation with other creditors, will determine the company’s future.
“Purdue Pharma is uniquely culpable for the opioid epidemic that continues to ravage our country,” Skrmetti said in the press release. “This resolution is the result of what has been repeatedly described as the most complicated litigation in American history. This multi-billion-dollar settlement cannot undo the damage done, but it will bring over ninety million dollars to Tennessee to support opioid abatement efforts in our communities.”
Thursday’s announcement follows the U.S. Supreme Court’s overturning of a June 2024 multistate settlement. The Supreme Court invalidated a previous settlement with the Sackler family, holding they were not entitled to blanket or automatic shields from liability. Skrmetti’s office said this settlement does not offer the Sackler family automatic protection, but “is built on consensual releases in exchange for payments” to be made by the Sackler family.
Attorneys general for California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Texas, Vermont, Virginia and West Virginia also helped secure the settlement.
