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 settlement with Purdue Pharma (Purdue) and its owners, the Sackler family.
Under the Sackler’s’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history.
Raoul and the attorney’s 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 Sackler’s 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 settlements, the settlement with Purdue and the Sackler’s 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.
