AG Ferguson: Washington will receive an additional $113 million from oxycontin makers to address the opioid crisis

OLYMPIA — Attorney General Bob Ferguson announced that Washington will receive an additional $113 million from Purdue Pharma and the Sackler family as a result of Ferguson leading a challenge to the Oxycontin maker’s bankruptcy plan.

By challenging the original bankruptcy plan, Ferguson and eight other attorneys general won an additional $1.175 billion from the Sacklers to help states, cities and tribes address the harms of the opioid epidemic. 

Washington’s share will more than double as a result of Ferguson challenging the bankruptcy plan —from $70 million under the original plan to $183 million. 

This money must be used to tackle the opioid crisis and help Washington’s recovery, a requirement that Ferguson has always insisted upon.

Ferguson co-led a group of nine attorneys general who challenged the bankruptcy proposal in federal court. Washington was one of three states to deliver oral arguments in U.S. District Court in New York City in November. 

Washington State Solicitor General Noah Purcell represented Washington at that hearing, and delivered oral arguments on a key issue. In December, U.S. District Court Judge Colleen McMahon agreed with Ferguson and rejected the bankruptcy proposal.

“Rather than join the majority of states in settlement, Washington chose to lead the fight against the Sacklers and Purdue,” Ferguson said. 

“As a result, we won more than $100 million for Washington state to address the opioid epidemic, and more than $1 billion for states, cities and tribes across the country. We stood up to the Sacklers and forced them to relinquish more of their fortune to help undo the damage they caused.”

The proposed resolution must still be approved by the bankruptcy court. In addition, Purdue and the Sacklers have appealed the District Court’s ruling vacating the original bankruptcy plan. As part of the new proposal, Washington and the eight other attorneys general will drop their opposition to the appeal pending approval of this settlement. The federal government and other parties involved in the appeal may or may not choose to continue the case.

If the appeal goes forward, the proposed settlement is contingent on the bankruptcy plan being approved. If the bankruptcy plan is not upheld, the proposed deal is void, and Ferguson will continue fighting in court to hold the Sacklers and Purdue accountability for illegally fueling the opioid epidemic. Washington was preparing for trial against Purdue Pharma when it declared bankruptcy.

As a result of this settlement, Washington will now receive a total of $183 million from Purdue and Sacklers to address the harms of the crisis — a significant increase from the original settlement that Ferguson rejected

The terms of the original plan, which Ferguson rejected as insufficient, guaranteed Washington approximately $70 million. As a result of Ferguson’s legal challenge, Washington will now receive another $113 million, for a total of $183 million, and, potentially, an additional $11 million, for a total of $194 million.

The nine attorneys general who successfully challenged the bankruptcy plan will receive additional money above the other states that did not challenge the plan. As a result of Washington’s leadership role in the legal challenge, Washington will receive $93.1 million.

All states, counties, cities and tribes with claims against Purdue — thousands of entities — will split $898 million. Washington will receive $20 million of this money.

The deal also provides the possibility of an additional $500 million all governmental parties would share if proceeds from the sale of the family’s international companies meet certain thresholds. If that money becomes available, Washington stands to gain about $11 million more.Under the terms of the settlement, the Sacklers and Purdue will make the final payment in 2039.

Read the case background here.