California expected to receive over $440 million from the settlement

OAKLAND — California Attorney General Rob Bonta today announced that a $7.4 billion settlement previously reached with Purdue Pharma and its owners, the Sackler family, has become legally effective, capping nearly a decade of work by attorneys general from across the country in pursuing investigations and litigation over Purdue’s and the Sacklers’ role in fueling the opioid crisis. The attorneys general launched a multistate investigation of Purdue in 2016, and California sued Purdue and certain members of the Sackler family in 2019. The settlement permanently bars the Sacklers from selling opioids in the U.S. and delivers funds for addiction treatment, prevention, and recovery to communities across the country over the next 15 years. California is expected to receive over $440 million from the settlement. 

After Purdue filed bankruptcy in September 2019 in light of massive litigation against it, the attorneys general took a lead role in the bankruptcy proceedings, including negotiating a new settlement that obtained more money from the Sacklers after the U.S. Supreme Court in June 2024 invalidated provisions in a prior settlement. The settlement gives funds to communities across the country, as well as individual victims and other groups who filed claims in the bankruptcy proceedings.

“With the settlement now in effect, California will, at long last, receive critical funding from Purdue Pharma and the Sackler family to help address the opioid crisis,” said Attorney General Bonta. “Our work doesn’t end here. We will continue holding those responsible for this crisis to account.” 

Fifty-five attorneys general, representing all eligible U.S. states and territories, signed onto the settlement in June 2025. It resolves litigation against Purdue and the Sacklers for producing and aggressively marketing opioids in the United States, fueling the largest drug crisis in the country’s history.

Most settlement funds will be distributed in the first three years. The Sacklers are paying more than $1.5 billion today, followed by approximately an additional $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Additionally, Purdue is paying approximately $900 million today. 

The settlement also means that Purdue’s manufacturing operations transfer, effective today, to Knoa Pharma LLC (Knoa), which will be overseen by a board of directors with no connection to Purdue. The settlement prevents Knoa from marketing opioids and provides for an independent monitor to ensure it provides these medicines in the safest possible manner that limits the risk of diversion.

The settlement also provides that Purdue and the Sacklers will make public more than 30 million documents related to their opioid business. 

With this settlement, California’s total opioid settlement funds are expected to exceed $4.65 billion. 

Attorney General Bonta is joined in reaching the settlement by attorneys general of Alabama, Alaska, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, 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, Wisconsin, and Wyoming.