Opioid Settlement Dollars Still A Mystery

December 8, 2025

Robert Kent, Author and President, Kent Strategic Advisors, LLC 

Tom O'Connor, Publisher

Over $50 billion has been secured in various national opioid settlements with pharmaceutical companies, distributors, and pharmacy chains for their roles in the opioid crisis. Most of these funds are designated for state and local governments to use for abatement efforts, including addiction treatment, prevention, and recovery programs. The settlement funds are distributed to states, counties, municipalities, and Native American tribes that sued the companies. 

The vast majority of the money (often 70% or more, depending on the state's plan) is directed to programs designed to mitigate the damage of the opioid epidemic, such as treatment facilities, overdose rescue medicines (like naloxone), and prevention education.

Interestingly, Purdue Pharma and the Sackler Family have filed for bankruptcy, and any funds they provide are not part of the $50 billion in national settlements. The current bankruptcy plan allocates a small portion of the funds to be paid as direct compensation to individuals and families who suffered harm.

Purdue Pharma/The Sacklers 

Purdue Pharma and the Sacklers reached a new $7.4 billion opioid settlement that has specific funds set aside for individual victims who filed claims within a particular timeframe. Even then, individual payouts are often modest, ranging from a few thousand dollars, and many victims face long waits before receiving any funds. Purdue is the maker of OxyContin, and the settlement over the company's improper marketing of opioids.

Purdue Pharma officials filed this deal with a federal bankruptcy court in March 2025, following negotiations with state attorneys general and other stakeholders. If this plan is finalized, payouts will occur over the next 15 years.

New York's Attorney General Letitia James said in a statement that the plan will "hold the Sackler family accountable" for what she described as their "leading role in fueling the epidemic of opioid addiction and overdoses." Under the terms of the deal, members of the Sackler family, who currently own Purdue Pharma, are expected to contribute approximately $6.5 billion.

The Sacklers, who are contributing at least $6.5 billion to the settlement, have said they have strong legal defenses against opioid lawsuits, including the argument that they are not directly and personally responsible for the company's opioid sales. Members of the Sackler family have expressed regret for their company's role in the opioid addiction crisis in the U.S. but denied wrongdoing.

According to a Purdue Pharma statement, a significant change from past settlement deals means that individuals who wish to sue the Sacklers in civil court for alleged wrongdoing will not be required to relinquish those lawsuits. "Creditors can preserve their right to take legal action against the Sacklers if they do not opt in to the Sackler releases contained in the Plan," Purdue Pharma said in a statement.

*Read another interesting article by Robert Kent here

Forecast: How Long And How Much Will Individuals Receive

Ryan Hampton, an addiction recovery advocate who was addicted to OxyContin and other opioids for more than a decade, said the deal only sets aside roughly $850 million to compensate direct victims of Purdue Pharma.

According to Ryan Hampton, "I'd still give it an F at this point because it still falls short of anything meaningful that victims will receive." Ryan estimated that his own direct payout would be roughly $3,500. "Compared to how long and drawn out this process has been ... it is very little money," Hampton said, adding, "I'm ready to put it behind me and move on with my life."

My Viewpoint

While I, like Ryan, want to put this behind us, I cannot, because the government is failing to spend the $50 billion in settlement funds properly.

They learned no lessons from their mishandling of the tobacco settlement funds.

Governments have mismanaged the opioid settlement funds. They are wasting settlement funds on things that have no connection to abating the nuisance of opioids, which was the foundational legal premise for the litigation. 

It would be easy for me to highlight some of the worst examples; however, as Forrest Gump said, "Stupid is as stupid does!" 

Legally, such spending clearly violates the terms of the settlement agreements; however, I have no expectations that the litigants will challenge these violations in court, as they are done with this issue.

What irritates me more than anything is the government's complete lack of transparency with its management of the settlement funds. Many of us have been asking questions since the settlement funds started flowing, and we have received no meaningful response. This should be basic, publicly available information that is posted on government websites.

It also matters because the origins of the opioid litigation flow from the loss of loved ones by those who live with that pain. We owe them better!

I still hope that the members of the Sackler Family will be criminally prosecuted for their role in this mess. Sadly, the government made this mess worse! My other thought is that I believe in karma!

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Robert Kent can be reached at https://www.kentstrategicadvisors.com/

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