(The Center Square) – Michigan announced this week it will join a multibillion-dollar settlement with Purdue Pharma and its owners, the Sackler family.
That $7.4 billion settlement will bring as much $154 million to Michigan, which will be distributed to local and state governments. It is the largest opioid settlement to date.
“After years of settlement negotiations, this agreement finally ensures Purdue is held responsible for its role in fueling the opioid epidemic,” said Michigan Attorney General Dana Nessel. “No amount of money can undo the harm caused, but we are already seeing funds from other settlements make a real difference in prevention, treatment, and recovery efforts. I was proud to work alongside my colleagues to secure this resolution and am confident that these dollars will help communities across Michigan combat this crisis.”
All 55 U.S. states and territories were a part of litigation, which sought damages from Purdue Pharma and the Sackler family for their roles in the opioid crisis across America.
Since 1996, Purdue has manufactured OxyContin, a powerful prescription opioid painkiller that quickly became one of the most widely prescribed pain medications in the United States. Under the agreement, the Sackler family would lose ownership of Purdue and a court-appointed board would manage the company’s remaining operations, with all profits going to further battle the opioid crisis.
“Under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history,” said a statement from Nessel’s office. “The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States.”
Awaiting approval by a judge in the coming days, the settlement is not yet finalized. Impacted parties, including victims, local governments, doctors, and more would have until Sept. 30 to vote on the deal. Those that do not sign on to the agreement will still have the option to pursue their own litigation.
If approved, the funds will be distributed over the next 15 years and will be used by communities to support addiction treatment, prevention, and recovery. Only a small part of the funds, $850 million, will go to victim compensation.
The agreement is the culmination of years of opioid-related litigation, which has been a focus for Nessel since her election.
That litigation, which has included lawsuits against pharmaceutical companies and even distributors like CVS and Walmart, will result in the distribution of over $1.6 billion to Michigan by 2040.
As overdose deaths continue to drop from a record highs in 2021, Nessel has applauded this litigation for playing a role in that.
“The progress we are seeing in combating the opioid epidemic proves what is possible when real investments are made in treatment and prevention,” Nessel said. “My office will continue working to hold those responsible for this crisis accountable to ensure the health and well-being of residents are put ahead of corporate greed and help support long-term recovery efforts for Michigan families.”
According to provisional data from the Michigan Department of Health and Human Services (MDHHS), Michigan opioid deaths have declined slightly every year since 2021, when there were 3,096. The department projects a dramatic drop in 2024 numbers, but final data from the last few months of the year has yet to be released.
Still, the state applauds its “comprehensive response” to the opioid crisis, which is killing thousands of Michiganders every year. That response has included the distribution of 1.3 million naloxone overdose reversal kits, with 34,000 reported uses of those.
“After years of heartbreaking increases in opioid overdose deaths, it’s incredibly encouraging to see a decline in Michigan and across the nation,” said Lauren A. Rousseau, president of the Northwest Wayne County Chapter of Face Addiction Now. “This progress is the result of meaningful collaboration between state leaders, treatment providers, and grassroots organizations.”
The final court hearing for the settlement is scheduled for Nov. 10.
