Chicago – Attorney General Kwame Raoul announced that 55 attorneys general, representing all eligible states and U.S. territories, agreed to sign on to a $7.4 billion settlement with Purdue Pharma (Purdue) and its owners, the Sackler family. The Sackler family informed the attorneys general of plans to proceed with the settlement, which would resolve litigation against Purdue and Sacklers for their role in creating and worsening the opioid crisis across the country.
“This settlement is the outcome of many hours of tireless work by the attorneys in my office’s Consumer Fraud Division, and I am proud of their dedication. As a result of their efforts, money from the Sacklers and Purdue will finally be available to fund services for Illinoisans affected by opioid addiction,” Raoul said. “From the start, I have prioritized securing resources to abate the impact of the opioid epidemic in Illinois. I am committed to ensuring that settlement funding is distributed equitably throughout the state to help fund programs that are trying to mitigate the opioid addiction crisis.”
Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention and recovery.
Raoul and the attorneys general’s settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis. Based on current best estimates, Illinois and the state’s local governments will receive approximately $148.8 million in abatement funds from this settlement over the next 15 years.
Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion and Purdue will pay approximately $900 million in the first payment. They will also pay $500 million after one year, an additional $500 million after two years, and $400 million after three years.
Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve resolutions of legal claims by state and local governments. The local government sign-on and voting solicitation process for this settlement moving forward will be contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days.
The announcement is the latest in Attorney General Raoul’s ongoing efforts to combat the opioid epidemic and hold accountable companies whose deceptive practices increased opioid prescriptions at the expense of public health. To date, national investigations and litigation against the pharmaceutical industry over the opioid crisis have led to more than $50 billion in settlements, with Illinois’ share at approximately $1.4 billion – not including this settlement with Purdue and the Sackler family.
Recently, Raoul’s office and the Illinois Department of Human Services (DHS) determined which abatement programs the state’s share of the opioid settlement funds will be directed toward. The state’s share of opioid settlement funds has and will continue to pay administrative costs supporting Illinois’ Remediation Fund, which is overseen by the Illinois Opioid Remediation Advisory Board. Recently, Raoul’s office and the Illinois Department of Human Services (DHS) determined part of the state’s share of the opioid settlement funds will be directed toward various abatement programs throughout Illinois. According to the Attorney General’s office and DHS, $56 million will fund crucial services over the next five years, including:
More details and updated reporting on the spending and uses of the state’s share of the opioid settlement funds will be available soon on the state’s Opioid Settlements Initiative website, which details all uses of opioid settlement funds the state and local governments receive.
Attorney General Raoul urges anyone who believes they or a loved one may be addicted to opioids to seek help by calling the Illinois Helpline for Opioids and Other Substances at 833-2FINDHELP, which operates 24 hours a day, seven days a week.
Joining Raoul in securing the settlement in principle with Purdue are the attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming
