Penalty Amount
$7,400,000,000
Connecticut Attorney General William Tong announced that Purdue Pharma will dissolve as the company’s bankruptcy concludes and a $7.4 billion settlement with Purdue and the Sackler family takes effect. The settlement permanently bars the Sacklers from selling opioids in the U.S., directs funds to addiction treatment and prevention, and requires the release of over 30 million documents related to Purdue’s opioid business. Connecticut is expected to receive $64 million from the settlement, with first payments anticipated in fall 2026.
Purdue Pharma will dissolve, with its manufacturing operations transferred to Knoa Pharma LLC, which is barred from marketing opioids and subject to an independent monitor. The Sackler family is permanently banned from selling opioids in the U.S., and must pay over $1.5 billion immediately, with additional payments totaling $1.4 billion through 2029, while Purdue pays $900 million immediately, totaling $7.4 billion in settlement funds distributed to states, municipalities, and victims over 15 years. Purdue and the Sacklers must also publicly release over 30 million documents related to their opioid business.
This enforcement action involves opioid marketing violations and bankruptcy proceedings, with no privacy-related violations or remedies. No privacy-related contract clauses (e.g., data processing, breach notification, consent) require review based on this action. In-house teams in the pharmaceutical industry should review vendor and marketing agreements for compliance with opioid regulations, but this action has no implications for privacy-related vendor, customer, or employee agreements.
Entity
Purdue Pharma
Industry
Healthcare"Purdue Pharma"
"$7.4 billion settlement"
"05/01/2026"
"Connecticut"
"settlement"
"permanently bars the Sacklers from selling opioids in the U.S."
$7.4B
New York Attorney General Letitia James announced the shutdown of opioid manufacturer Purdue Pharma as part of a $7.4 billion settlement with a bipartisan coalition of 54 other state attorneys general. The Sackler family, former owners of Purdue, are permanently barred from selling opioids in the U.S. and have no involvement in Knoa Pharma, the new public benefit corporation replacing Purdue. Purdue was sentenced on criminal charges related to its role in the opioid crisis on April 28, 2026, with the new entity operating under strict oversight and excess revenue funding opioid abatement efforts.
$7.4B
The U.S. Bankruptcy Court confirmed a $7.4 billion settlement between Purdue Pharma, the Sackler Family, and 55 attorneys general to resolve claims over the opioid crisis. Connecticut will receive up to $64 million for treatment, prevention, and victim support. The settlement bars the Sacklers from selling opioids and requires public disclosure of documents.
Attorney General Tong and a coalition of 21 attorneys general and Pennsylvania filed lawsuits against the U.S. Department of Transportation, FMCSA, and DHS to block demands for the personal information of 17 million CDL drivers. The lawsuits allege violations of federal privacy laws and the Administrative Procedure Act, and seek an emergency order to prevent the data transfer.
Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.
Attorney General Tong joined a coalition of 17 attorneys general in sending letters to the Office of the Comptroller of the Currency and the Federal Reserve Board, urging them to deny Opportunity Financial's application to acquire BNC National Bank. The merger would grant OppFi a national bank charter, allowing it to circumvent state lending laws and charge triple-digit interest rates, posing risks to consumers and the banking system.
The court granted the States' motion finding that Nexstar violated the preliminary injunction by placing current or former Nexstar executives on TEGNA's Board of Directors. The court ordered regular reporting to the States and appointed a special master to oversee compliance.