Michigan will receive up to $154 million
LANSING – Michigan Attorney General Dana Nessel today announced that all 55 attorneys general, representing all eligible states and U.S. territories, have agreed to sign on to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The Sackler family has also informed the attorneys general of its plan to proceed with the settlement, which would resolve litigation against Purdue and the Sacklers for their role in creating and worsening the opioid crisis across the country. Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement, contingent on bankruptcy court proceedings.
“After years of settlement negotiations, this agreement finally ensures Purdue is held responsible for its role in fueling the opioid epidemic,” Nessel said. “No amount of money can undo the harm caused, but we are already seeing funds from other settlements make a real difference in prevention, treatment, and recovery efforts. I was proud to work alongside my colleagues to secure this resolution and am confident that these dollars will help communities across Michigan combat this 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. This settlement in principle is the nation’s largest settlement to date with the individuals responsible for the opioid crisis. Michigan’s state and local governments will receive as much as $154 million 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 roughly $900 million in the first payment, followed by $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 resolution 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.
Since taking office in 2019, Attorney General Nessel has focused intently on combatting the opioid epidemic and holding accountable those responsible for creating and fueling the crisis, resulting in over $1.6 billion dollars to Michigan governments through settlements with McKinsey & Co, Distributors (Cardinal Health, McKesson, Inc., and AmerisourceBergen), Janssen Pharmaceuticals, Teva Pharmaceutical, Allergan Pharmaceutical, CVS, Walmart, and Walgreens. The money is distributed to the state and local units of government for Opioid-use disorder treatment and remediation.
Analysis of provisional data from the Michigan Department of Health and Human Services (MDHHS) indicates a 34% reduction in overdose deaths between 2023 and 2024 – about 1,000 fewer deaths. This continued progress reflects the impact of sustained, strategic investment in prevention, treatment, recovery, and harm-reduction efforts – many of which are made possible through additional funding received as a result of Michigan’s participation in the national opioid settlements.
Attorney General Dana Nessel is joined in securing this settlement in principle by the attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Guam, Hawai'i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, 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, Wyoming, and Wisconsin.
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