New Jersey to receive $125M from $7.4B opioid settlement with Purdue Pharma, Sackler family
TRENTON, N.J. — New Jersey is set to receive more than $125 million as part of a $7.4 billion nationwide settlement with Purdue Pharma and members of the Sackler family over their role in the opioid crisis, Attorney General Jennifer Davenport announced.
The settlement, which became legally effective this week, resolves years of litigation and investigation into the company’s production and marketing of opioid medications. New Jersey joined a multistate investigation in 2016 and filed lawsuits against Purdue in 2017 and Sackler family members in 2019.
“Purdue and the Sackler family hyper-charged America’s opioid epidemic through their recklessness and greed,” said Attorney General Davenport. “Money cannot erase the pain for the people who have lost loved ones to this crisis, but those responsible are being held accountable for their actions. These settlement funds must be used for education, prevention, and recovery to continue the progress made in avoiding and treating opioid addiction.”
Under the agreement, New Jersey is expected to receive approximately $125.4 million, with most funds distributed over the next three years. Nationwide, the settlement includes payments from both Purdue Pharma and the Sacklers, including more than $1.5 billion paid immediately by the family and additional payments scheduled through 2029. Purdue is also contributing approximately $900 million.
The settlement follows Purdue’s 2019 bankruptcy filing amid widespread litigation tied to the opioid epidemic. Attorneys general played a central role in negotiating the agreement after the U.S. Supreme Court in 2024 invalidated portions of an earlier settlement.
In addition to financial penalties, the settlement bars the Sackler family from selling opioids in the United States. Purdue’s manufacturing operations will transition to a new entity, Knoa Pharma LLC, which will be overseen by an independent board and prohibited from marketing opioids.
The agreement also requires the release of more than 30 million documents related to Purdue’s opioid business.
New Jersey officials said the funds will support addiction treatment, prevention and recovery programs. With this settlement, the state has secured more than $1.3 billion in opioid-related settlements.
The agreement includes participation from attorneys general representing states and U.S. territories across the country.
