LINCOLN — Nebraska Attorney General Mike Hilgers announced that a nationwide $7.4 billion settlement with Purdue Pharma and the Sackler family is now officially in effect, bringing to a close nearly a decade of investigations and legal action tied to the opioid crisis.
The agreement follows years of work by attorneys general across the country, who first launched a multistate investigation into Purdue in 2016. After Purdue filed for bankruptcy in 2019 amid mounting lawsuits, state officials played a leading role in negotiations, ultimately securing a revised settlement after the U.S. Supreme Court struck down parts of an earlier agreement in 2024.
The finalized settlement resolves claims that Purdue and the Sackler family helped fuel the nation’s opioid epidemic through the production and aggressive marketing of opioid medications. A total of 55 attorneys general, representing all eligible states and U.S. territories, joined the agreement.
Under the terms of the settlement, the Sackler family is permanently prohibited from selling opioids in the United States. The deal will also provide billions of dollars over the next 15 years to support addiction treatment, prevention efforts, and recovery programs in communities nationwide. Nebraska is expected to receive just under $19.8 million from the settlement.
A significant portion of the funding will be distributed early, with more than $1.5 billion paid immediately, followed by additional payments scheduled over the next several years. Purdue itself is contributing approximately $900 million upfront.
As part of the agreement, Purdue’s manufacturing operations will transition to a new company, Knoa Pharma LLC, which will operate under independent oversight. The new entity is prohibited from marketing opioids and will be monitored to ensure medications are handled in a way that minimizes misuse and diversion.
The settlement also requires the release of more than 30 million internal documents related to Purdue’s opioid business, providing further transparency into the company’s practices.
Officials say the agreement represents a major step toward accountability and recovery as communities continue to address the lasting impacts of the opioid crisis.
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