Attorney General Gordon C. Rhea announced Wednesday afternoon that a $7.4 billion settlement reached with Purdue Pharma and its owners, the Sackler family, has become legally effective, capping nearly a decade of work by attorneys general from across the country in pursuing investigations and litigation over Purdue’s and the Sacklers’ role in fueling the opioid crisis.
With this agreement, the U.S. Virgin Islands has now secured a total of $1,586,934.33 in opioid settlement funds, according to the press release.
The attorneys general launched a multistate investigation of Purdue in 2016, and the U.S. Virgin Islands sued Purdue in September 2020, according to a press release announcing the final settlement.
After Purdue filed bankruptcy in September 2019 in light of massive litigation against it, the attorneys general have taken a lead role in the bankruptcy proceedings, including negotiating a new settlement that obtained more money from the Sacklers after the Supreme Court in June 2024 invalidated provisions in a prior settlement, the release stated.
The settlement gives funds to communities across the country, as well as individual victims and other groups who filed claims in the bankruptcy proceedings.
“While no settlement can undo the devastating impact the opioid crisis has had on families and communities across the Virgin Islands and across the nation, this agreement represents an important step toward accountability and recovery,” said Rhea. “The funds received through this settlement will support critical efforts focused on opioid prevention, treatment, and recovery services, while also helping ensure that those responsible for fueling this public health crisis are held accountable.”
Fifty-five attorneys general representing all eligible U.S. states and territories previously signed onto the settlement. It resolves litigation against Purdue and the Sacklers for producing and aggressively marketing opioids in the United States, fueling the largest drug crisis in the country’s history, the release stated.
The settlement also permanently bars the Sacklers from selling opioids in the U.S. and delivers funds for addiction treatment, prevention, and recovery to communities across the country over the next 15 years.
Most settlement funds will be distributed in the first three years. The Sacklers are paying more than $1.5 billion Wednesday, followed by approximately an additional $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Additionally, Purdue is paying approximately $900 million Wednesday.
The settlement also means that Purdue’s manufacturing operations transfer effective Wednesday to Knoa Pharma LLC, which will be overseen by a board of directors who had no connection to Purdue. The settlement prevents Knoa from marketing opioids and provides for an independent monitor to ensure it provides these medicines in the safest possible manner that limits the risk of diversion.
The settlement also provides Purdue and the Sacklers will make public more than 30 million documents related to their opioid business.
Rhea is joined in reaching the settlement by Attorneys General of Alabama, Alaska, 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, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
The DOJ has also participated in settlements with other jurisdictions that have allotted $5,187,299.82 to the V.I. to fight opioid abuse under certain conditions, according to previous statements.
