Michigan Attorney General Dana Nessel announced on May 1 that a $7.4 billion settlement with Purdue Pharma and the Sackler family has become legally effective, following nearly ten years of legal action by attorneys general nationwide over the companies’ roles in the opioid crisis.
The settlement is significant as it delivers funds to communities, individual victims, and other groups affected by the opioid epidemic. The agreement comes after a multistate investigation began in 2016 and follows Purdue’s bankruptcy filing in September 2019 due to extensive litigation.
Nessel said, “This long-awaited settlement will undoubtedly help save lives. Since I took office, we have secured $1.8 billion to bolster intervention services and treatment across the state. We are already seeing significant progress in combating the opioid crisis. This funding will only further provide support for families seeking healing, while ensuring that Purdue Pharma and the Sackler family are held accountable for the devastation they have caused.”
Fifty-five attorneys general from all eligible U.S. states and territories signed onto this agreement, which resolves lawsuits against Purdue and the Sacklers for their production and aggressive marketing of opioids in America. The deal permanently bars members of the Sackler family from selling opioids in the United States.
Under its terms, Michigan’s state and local governments expect to receive $154 million over 15 years for addiction treatment, prevention, and recovery programs. Most of these funds will be distributed within three years; more than $1.5 billion is being paid immediately by the Sacklers with additional payments scheduled through May 2029.
The settlement also mandates that Purdue’s manufacturing operations transfer immediately to Knoa Pharma LLC under independent oversight without ties to Purdue or its owners; Knoa is barred from marketing opioids but must continue supplying them safely under an independent monitor’s supervision.
In addition to financial compensation, more than 30 million documents related to Purdue’s opioid business will be made public as part of transparency measures included in this resolution.
Since taking office in 2019, Nessel has focused on holding those responsible for fueling Michigan’s opioid crisis accountable—securing over $1.8 billion through various settlements for use disorder treatment statewide.
Provisional data from Michigan Department of Health and Human Services shows a reported reduction of overdose deaths by about one third between 2023 and 2024—approximately one thousand fewer deaths—which officials attribute partly to increased funding enabled by national settlements such as this.