Nationwide Opioid Settlement Reaches Key Milestone, Maryland Poised to Receive Over $90 Million

Maryland Attorney General Anthony G. Brown announced a significant development in the ongoing fight against the opioid crisis, as a $7.4 billion settlement with Purdue Pharma and the Sackler family has officially gone into effect. This landmark agreement, the culmination of nearly a decade of legal efforts by attorneys general across the United States, aims to provide substantial resources for treatment, prevention, and recovery programs nationwide. The multistate investigation into Purdue’s role in fueling the opioid epidemic began in 2016, with Maryland’s Consumer Protection Division filing charges against the company and its owners in 2019.

Following Purdue Pharma’s bankruptcy filing in September 2019, attorneys general played a central role in the bankruptcy proceedings. Maryland was among nine states that contested an earlier bankruptcy plan, which would have resulted in considerably less funding. The current settlement, which secured more substantial financial contributions from the Sackler family, was finalized after a June 2024 Supreme Court decision invalidated certain provisions of a previous agreement. The funds from this settlement are designated to aid communities across the country, as well as individuals and other entities that submitted claims in the bankruptcy process.

The settlement permanently prohibits the Sackler family from selling opioids within the United States and will distribute funds over the next 15 years to support addiction treatment, prevention, and recovery initiatives. Maryland is projected to receive over $90 million from this settlement. The majority of these funds are expected to be disbursed within the initial three years. The Sacklers are making an initial payment of over $1.5 billion, followed by subsequent payments of approximately $500 million in May 2027 and May 2028, and $400 million in May 2029. Purdue Pharma is also contributing approximately $900 million at this time. With this latest settlement, Maryland has now secured more than $747 million in total opioid settlement funds.

These funds will be managed through Maryland’s Opioid Restitution Fund (ORF), established in 2019 to receive all monies awarded to the state from legal actions related to prescription opioids. The ORF dollars are administered through grants to community organizations and in partnership with state agencies, with oversight from the Office of the Lieutenant Governor and Maryland’s Office of Overdose Response. These grants support critical programs and services for individuals impacted by the opioid crisis.

The settlement also mandates that Purdue’s manufacturing operations are transferred to Knoa Pharma LLC, which will be governed by a board of directors with no prior ties to Purdue. Knoa Pharma will be prevented from marketing opioids, and an independent monitor will ensure that the company distributes these medications in the safest manner possible to minimize diversion risks. Furthermore, the agreement requires Purdue and the Sacklers to make public over 30 million documents pertaining to their opioid business. The attorneys general involved in this settlement represent all eligible U.S. states and territories, totaling 55 attorneys general.

Article by Mel Anara, based upon information from the Maryland Attorney General.

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