Attorney General Tong Announces Purdue Pharma to Dissolve Today as $7.4 Billion Opioid Settlement Goes Into Effect

05/01/2026

Connecticut to Receive $64 Million

(Hartford, CT) — Attorney General William Tong announced that Purdue Pharma will dissolve today as the company’s bankruptcy concludes and the $7.4 billion settlement reached with the company and its owners, the Sackler family, becomes legally effective. Today’s development caps 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 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. Connecticut is expected to receive $64 million from the settlement.

The conclusion of the bankruptcy proceeding today lifts stays in state courts, enabling attorneys general to begin necessary filings to resolve state litigation against Purdue and the Sacklers pursuant to the $7.4 billion settlement.

“As of today, Purdue and the Sackler Family are permanently exiled from the addiction industry. Billions of dollars of their blood money will now begin to flow towards treatment and prevention and support for the victims and survivors of the opioid epidemic infamously inflamed by their callous greed. We expect—and will aggressively monitor to ensure—that the new entity emerging today will follow all laws and place human lives above profits,” said Attorney General Tong.

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. Money will be placed into a series of trusts to be distributed once necessary state court proceedings conclude. Connecticut anticipates receiving its first payment in fall of 2026.

The settlement also means that Purdue’s manufacturing operations transfer effective today to Knoa Pharma LLC, which will be overseen by a board of directors who had 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 Purdue and the Sacklers will make public more than 30 million documents related to their opioid business.

Fifty-five attorneys general representing all eligible U.S. states and territories previously signed onto the settlement.

Connecticut first filed suit against Purdue and individual members of the Sackler family in 2019, alleging that the company and family peddled a series of falsehoods to push patients toward its opioids, reaping massive profits while opioid addiction skyrocketed. Connecticut expanded and amended that suit later in 2019 to add additional defendants and allegations.

Purdue Pharma filed for bankruptcy in September 2019. In 2021, the bankruptcy court approved an inadequate Purdue bankruptcy plan that granted a lifetime legal shield to the Sackler family, unlawfully blocking states like Connecticut from pursuing claims against the family. The plan required the Sackler family to pay $4.3 billion over nine years to the states, municipalities and plaintiffs that sued the company. California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia objected to and ultimately appealed the plan. The United States Trustee, an arm of the Department of Justice, also appealed.

In December 2021, the U.S. District Court vacated the Purdue bankruptcy order, agreeing with the dissenting states that the bankruptcy court lacked authority to force states to release their claims against the Sackler family.

The District Court decision paved the way for Attorney General Tong and the eight other dissenting states to negotiate a new settlement forcing Purdue and the Sacklers to pay $6 billion to victims, survivors and states, to permanently exit the global opioid business, and to force the Sacklers to reckon face-to-face with victims and survivors at a public hearing.

That $6 billion settlement was later overturned by the U.S. Supreme Court, sending the states back to mediation in an even stronger position.

Twitter: @AGWilliamTong

Facebook: CT Attorney General

Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov