PROVIDENCE – Rhode Island has recovered nearly $30 million after all 55 attorneys general representing all eligible states and U.S. territories approved a $7.4 billion settlement with Purdue Pharma and its owners, the Sackler family,
Attorney General Peter F. Neronha announced on Monday.
State and local governments across the state will receive more than $27 million
within the first year of the settlement period, once the agreement is finalized and approved by court. Rhode Island will receive the bulk of its funds up-front. Additional money to cover state litigation expenses as well as potentially additional settlement proceeds resulting from the sale of Purdue entities are expected over the next 15 years.
The funds must be used to address the opioids epidemic in Rhode Island and will be shared between the state and the municipalities, with 80% going to the general fund and 20% allocated to all of the state's cities and town.
"The role of Purdue Pharma, and the Sackler Family in particular, in the opioid epidemic cannot be understated: together they are responsible for hundreds of thousands of lives lost or damaged, families broken, and communities in pain," Neronha said. "Purdue and the Sacklers knowingly pumped highly addictive opioids into cities and towns across America, for the sake of greed and profit, no matter the human cost. These funds are making a real difference for Rhode Islanders, by, for example, expanding the state’s in-patient and out-patient treatment capacity, and driving down overdose and overdose deaths."
With Monday's settlement, The Sackler family agrees to proceed with resolving lawsuits against both themselves and Purdue Pharma over their role in driving the nationwide opioid epidemic. The agreement ends the Sacklers' control of Purdue and their ability to sell opioids in the United States.
In total, 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.
To date, Rhode Island has received a total of
$312 million in total from opioid manufacturers, distributors and nationwide pharmacies like CVS and Walgreens, Neronha said.
Other major opioid settlements for Rhode Island include $90.8 million from distributors McKesson Corp., Cardinal Health, and AmerisourceBergen and over $56 million combined from CVS, Walgreens and Walmart. Additional funds have come from companies like Johnson & Johnson, Teva Pharmaceutical Industries, Allergan, Mallinckrodt and McKinsey.
Earlier this week, the Executive Office of Health and Human Services announced that Rhode Island has seen its second year of reduction in fatal overdoses, with overdose deaths declining 25% since 2022.
Now that the state sign-on period has concluded for the Purdue settlement, local governments across the country will be asked to join the settlement contingent on anticipated approval in bankruptcy court proceedings.
A hearing is scheduled on that matter in the coming days.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
80% to the “General Fund” and then…?