(Anchorage, AK) – Alaska Attorney General Treg Taylor announced Monday that all 55 attorneys general, representing all eligible states and U.S. territories, agreed to sign on to a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family. The Sackler family has also informed the attorneys general of its plan to proceed with the settlement, which would resolve litigation against Purdue and Sacklers for their role in creating and worsening the opioid crisis across the country. Now that the state sign-on period has concluded, local governments across the country will be asked to join the settlement, contingent on bankruptcy court proceedings.
“Today marks another significant step in addressing the opioid crisis,” said Attorney General Taylor. “Our first lawsuit addressing the opioid crisis was against Purdue Pharma, and it is great to bring the saga to an end. The funds received here are vital for addiction treatment, prevention, and recovery in our communities. But it isn’t just about money; it’s about accountability. All 55 attorneys general have come together to prevent Purdue and other companies from profiting off deceitful marketing practices. This settlement ensures we are committed to reversing this epidemic and supporting those affected.”
“This settlement is another step forward in our commitment to healing and recovery. These funds will directly support Alaskans through expanded prevention, treatment, and recovery services. Every life we can help save and restore through these resources brings us closer to ending the opioid crisis in our state,” said Commissioner Heidi Hedberg with the Alaska Department of Health.
Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities nationwide will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation’s largest settlement to date with individuals responsible for the opioid crisis.
Alaska state and local governments may receive as much as $12.2 million from this settlement over the next 15 years.
Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion, and Purdue will pay roughly $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years.
Like prior opioid settlements, the settlement with Purdue and the Sacklers will involve 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 in the coming days.
Including this new settlement, Alaska has obtained settlements committing nearly $100 million in funds from companies that helped fuel the opioid epidemic. The payments arrive annually over 15 to 18 years, with the state to receive $85 million and the nine local political subdivisions to receive $15 million. To date, the Health Department has awarded some $8.5 million in funds to 18 grantees across Alaska, including grants such as $143,000 each to the Bethel Family Clinic, to Mat-Su Youth Housing and to Petersburg Medical Center, among others. See a complete list of providers from a Health Department release.
As of May, 245 Alaskans have died from opioid overdoses from March 2024 through February 2025; there were 91 opioid-related emergency department visits; and 251 all drug-related emergency department visits, according to Health’s dashboard.
Attorney General Taylor is joined in securing this settlement in principle by the attorneys general of Alabama, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
