Ken Paxton Announces $7.4 Billion Purdue Pharma Settlement

Texas Attorney General Ken Paxton (R) announced that a sweeping  $7.4 billion settlement with Purdue Pharma and the Sackler family has officially taken effect, marking a major development in long-running litigation tied to the opioid crisis.

Under the agreement, Texas is expected to receive approximately $286.5 million, contributing to more than $3 billion in total opioid settlement funds secured by Paxton's office to date.

"For years, I have fought relentlessly to ensure Big Pharma pays for its role in causing the opioid crisis," said Paxton. "While no amount of money can undo the devastation... these funds will help those affected to recover and rebuild."

The settlement stems from years of legal action, including a multistate investigation involving 55 states and territories and a 2018 lawsuit led by Paxton. Purdue filed for bankruptcy in 2019, triggering complex negotiations in which Texas played a leading role.

The finalized agreement provides compensation to the states, local communities, and individual victims, while also imposing structural changes on Purdue's operations. A significant portion of the funding will be directed toward addiction treatment, prevention, and recovery programs over the next 15 years, with most of the funds distributed within the first three years.

As part of the settlement, the Sackler family is required to pay more than $1.5 billion upfront, followed by additional payments scheduled through 2029. Purdue itself is contributing roughly $900 million immediately.

The agreement also includes major restrictions on the Sacklers, permanently barring them from selling opioids in the United States.

Operational control of Purdue's business will now transfer to Knoa Pharma LLC, a newly structured entity overseen by an independent board with no prior ties to Purdue. The settlement further prohibits the new company from marketing opioids and establishes independent monitoring mechanisms to prevent diversion, the illegal distribution or misuse of prescription drugs.

In a move aimed at transparency, the agreement also requires the release of more than 30 million documents related to Purdue's opioid business practices.

The Purdue Pharma settlement represents one of the largest financial resolutions tied to the opioid epidemic, combining financial restitution with structural reforms and accountability measures.