Indiana to receive up to $100M as part of $7.4B opioid settlement

Indiana will receive as much as $100 million as part of a $7.4 billion settlement that all 50 states, the District of Columbia and U.S. territories have reached with Purdue Pharma and the Sackler family, Indiana Attorney General Todd Rokita announced Monday.

Rokita said the agreement addresses the devastating impact of Purdue Pharma’s aggressive marketing of opioid products under the Sacklers’ ownership, which “fueled the worst drug crisis in U.S. history.”

The deal was offered in March as part of Purdue Pharma’s bankruptcy plan to settle thousands of lawsuits over the toll of the powerful prescription painkiller OxyContin. The filing marked a milestone in a tumultuous legal saga that had gone on for more than five years.

Under the deal, the family members agreed to give up ownership of the company in addition to contributing money over 15 years, with the biggest payment up front.

Family members resigned from Purdue’s board, stopped receiving money from the company and ceased other involvement before it filed for bankruptcy protection in 2019 as it faced lawsuits from thousands of state and local governments, plus others.

The settlement plan was hammered out in months of mediation involving groups that sued Purdue.

“This settlement—along with the other ones we have produced over the last four years—are a monumental victory for Hoosiers and communities nationwide devastated by the opioid epidemic,” Rokita said in written comments. “The Sackler family and Purdue Pharma profited for decades while pushing addictive drugs that tore apart families and lives. This agreement ends the family’s control, bans them from selling opioids in the U.S., and delivers critical funds to rebuild our communities through addiction treatment, prevention, and recovery programs.”

Rokita said Indiana’s state and local governments will receive up to $100 million over the next 15 years to support efforts to combat the opioid crisis. The majority of the settlement funds will be distributed within the first three years, with the Sacklers contributing $1.5 billion and Purdue providing approximately $900 million in the initial payment. Additional payments include $500 million after one year, $500 million after two years, and $400 million after three years.

The settlement will involve resolution of legal claims by state and local governments, Rokita said, with a local government sign-on and voting solicitation process, and is contingent on bankruptcy court approval. A hearing is scheduled on that matter in the coming days, he said.

“This is about accountability and justice,” Rokita said. “We’re ensuring that those responsible for this crisis are held accountable and that the resources are directed to where they’re needed most—our communities working to heal and rebuild.”