Alabama Attorney General Announces Settlement with Purdue Pharma

On Monday, Alabama Attorney General Steve Marshall revealed a nationwide settlement totaling $7.4 billion with Purdue Pharma and its owners.

Marshall stated, “Today marks our steadfast dedication to ensuring justice and holding the Sackler family and Purdue Pharma accountable.” He noted that Alabama’s approach to litigation has successfully returned over $1.04 billion to the state, highlighting the significant toll of the opioid crisis.

The Sackler family has communicated their intentions to 55 attorney generals from all eligible states and U.S. territories regarding the settlement.

Marshall initiated a lawsuit against Purdue Pharma in 2018 after being appointed co-chair of the Alabama Opioid Overdose and Addiction Council by Governor Kay Ivey.

He emphasized the importance of acting promptly to sign contracts, allowing funds to reach Alabama residents and addressing community needs, particularly in law enforcement.

The majority of the settlement funds are expected to be distributed within the first three years. The Sacklers will pay $1.5 billion, while Purdue’s payment structure includes an initial $900 million, followed by $500 million each year for two years, and $400 million in the final year.

Similar to earlier opioid settlements, this agreement includes the resolution of claims made by state and local governments. The process for local governments to sign on and vote is contingent upon Bankruptcy Court approval, with a hearing set for the upcoming days.

With this latest settlement, Alabama has now secured nearly $730 million from companies implicated in the opioid epidemic.

Attorney General Marshall played a critical role in this settlement, which includes participation from numerous states such as Alaska, Arizona, California, Texas, and many others.