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

The Sackler family, the owners of Purdue Pharma, informed Marshall and the other 54 attorney generals, representing all eligible U.S. states and territories, of the plan to proceed to settlement, which would resolve litigation against Purdue Pharma and the Sacklers for their role in “creating and worsening the opioid crisis across the country.” 

Now, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.

“Today is a testament to our steadfast commitment to providing justice and holding the Sackler family and Purdue Pharma accountable. Our commitment to the first-in-the-nation litigation strategy has positioned Alabama to bring over three quarters of a billion dollars back to our state—a state that the opioid crisis has disproportionally impacted,” Marshall stated. “It’s important for local communities to take swift action to sign on to the agreement to ensure they receive the opportunity to put that money to work for our Alabama citizens in need. Together with prudent decision making, we can make a difference for our communities and law enforcement who desperately need the support.”

Purdue Pharma has faced thousands of lawsuits over the years in regards to its marketing of opioids, especially the painkiller OxyContin. According to the Centers for Disease Control, more than 500,000 people in America have died from overdoses involving opioids since 1999. 

This settlement will end the Sacklers’ control of Purdue Pharma and communities across the country will receive direct funding over the next 15 years to support addiction treatment, prevention and recovery. This settlement in principle is the nation’s largest settlement with individuals considered to be responsible for the opioid crisis. 

Alabama’s state and local governments will receive as much as $75 million for this settlement over the next 15 years. Most of the settlement’s funds will be distributed over the next three years. The Sackler family will pay $1.5 billion. Purdue Pharma will pay $900 in the first payment, followed by $500 million after one year, an additional $500 million after two years and $400 million after three years. 

The settlement will involve the 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 later this week.