Trenton, NJ — A sweeping $7.4 billion settlement with Purdue Pharma and the Sackler family is now in effect, directing billions toward opioid addiction treatment and prevention nationwide, including more than $125 million for New Jersey. State officials say the agreement marks a major step in holding key players accountable for their role in the opioid crisis.
The settlement, finalized after years of litigation and bankruptcy proceedings, will distribute funds to states, communities, and victims over the next 15 years, with most payments scheduled in the first three.
Years-long legal battle reaches resolution
The agreement caps nearly a decade of legal action led by attorneys general across the country. New Jersey joined a multistate investigation launched in 2016 and filed its own lawsuits against Purdue in 2017 and members of the Sackler family in 2019.
The path to this settlement included a major setback when the U.S. Supreme Court rejected parts of an earlier deal in June 2024, forcing negotiators back to the table. The revised agreement ultimately secured additional financial contributions from the Sacklers.
Attorney General Jennifer Davenport said the outcome reflects long-standing efforts to confront the companies behind the crisis.
“Purdue and the Sackler family hyper-charged America’s opioid epidemic through their recklessness and greed,” Davenport said. “Money cannot erase the pain for the people who have lost loved ones to this crisis, but those responsible are being held accountable.”
Funding aimed at treatment, prevention, recovery
New Jersey is expected to receive approximately $125.4 million from the settlement, contributing to a broader total of more than $1.3 billion the state has secured from opioid-related settlements overall.
Officials say the funds must be used for addiction education, prevention programs, and recovery services—areas that have seen increased demand amid the long-running public health crisis.
Nationwide, the settlement includes immediate and phased payments. The Sackler family is contributing more than $1.5 billion upfront, followed by additional payments totaling hundreds of millions through 2029. Purdue is also paying roughly $900 million at the outset.
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Key Points
• $7.4 billion opioid settlement with Purdue and Sackler family now in effect
• New Jersey to receive about $125 million for addiction response efforts
• Agreement includes restrictions on opioid sales and long-term funding distribution
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Industry restrictions and oversight included
Beyond financial penalties, the settlement imposes major structural changes. The Sackler family is permanently barred from selling opioids in the United States.
Purdue’s operations will transition to a new entity, Knoa Pharma LLC, which will be overseen by an independent board with no prior ties to Purdue. The company will be prohibited from marketing opioids and will operate under monitoring designed to limit misuse and diversion.
The agreement also requires the release of more than 30 million documents related to Purdue’s opioid business, potentially providing further insight into how the drugs were marketed and distributed.
National impact of settlement
All eligible U.S. states and territories participated in the settlement, reflecting the nationwide scope of the opioid epidemic. Funds are expected to reach local communities that have borne the brunt of addiction, overdose deaths, and strained healthcare systems.
Officials emphasize that while the settlement cannot undo past harm, it provides resources aimed at long-term recovery and prevention.
What happens next
The settlement is now legally effective, and initial payments are being distributed. New Jersey and other states will begin allocating funds to approved programs, while oversight measures and corporate restrictions take effect immediately.
