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All U.S. states and territories join agreement resolving opioid crisis claims against Purdue and Sackler family.
6-16-2025 3:45pm
New Jersey to Receive Up to $125 Million from Nationwide $7.4 Billion Purdue Pharma Settlement
NEW JERSEY - New Jersey Attorney General Matthew J. Platkin announced that the state will receive up to $124.5 million over 15 years as part of a $7.4 billion nationwide settlement with Purdue Pharma and the Sackler family, the company’s owners. The settlement, signed by attorneys general from all 50 states, five territories, and the District of Columbia, seeks to resolve litigation over Purdue’s role in the opioid epidemic.
“While we know that no amount of money can erase the pain for those who lost loved ones to this crisis, this settlement will help prevent future tragedies through education, prevention, and other resources,” said Attorney General Platkin. “The Sacklers put greed and profit over human lives, and with this settlement, they will never be allowed to sell these drugs again in the United States.”
The agreement follows years of legal proceedings targeting Purdue Pharma's manufacturing and aggressive marketing of opioid painkillers, which public officials say contributed to widespread addiction, overdose deaths, and strain on public health systems across the United States. The settlement is contingent on approval by a bankruptcy court, with a hearing scheduled in the coming days.
Under the terms of the settlement, the Sackler family will contribute $1.5 billion initially, with Purdue paying $900 million. Subsequent payments of $500 million, $500 million, and $400 million are scheduled to follow annually over the next three years. The bulk of funds are to be disbursed within this early phase, with the remainder distributed over the following 12 years.
According to state officials, New Jersey’s share will be directed toward programs that address opioid addiction through treatment, prevention, and public education. The settlement also ends the Sackler family's control over Purdue Pharma and prohibits them from selling opioids in the United States.
Purdue Pharma, founded in 1892 and acquired by the Sackler family in 1952, has been a focal point in the national opioid crisis primarily due to its development and marketing of OxyContin. The company faced widespread criticism and legal scrutiny for allegedly downplaying the drug’s addictive properties and aggressively promoting it to healthcare providers. These practices were linked to a sharp increase in opioid addiction and overdose deaths, prompting thousands of lawsuits from states, municipalities, and individuals.
Amid mounting litigation, Purdue Pharma filed for bankruptcy in 2019. The resulting $7.4 billion settlement aims to resolve these legal claims and includes provisions for the formation of a new public-benefit company. This restructured entity will be overseen by an independent board and focus on the production of overdose reversal medications and the support of opioid crisis abatement efforts.
The opioid epidemic has claimed over 850,000 lives in the United States since 1999, according to the U.S. Centers for Disease Control and Prevention, underscoring the widespread and lasting impact of the crisis. This agreement represents the largest settlement to date involving individuals held accountable for contributing to the epidemic.
The case in New Jersey was managed by Assistant Attorney General Lara Fogel and Deputy Attorneys General Brian DeVito and Jesse Sierant of the Division of Law’s Affirmative Civil Enforcement Practice Group.
