WASHINGTON — Purdue Pharma has gained support from attorneys general in 55 U.S. states and territories for a $7.4 billion settlement aimed at resolving thousands of lawsuits related to the opioid crisis. The deal, announced Monday, includes $6.5 billion from members of the Sackler family, who own the company, and $900 million from Purdue itself.

The settlement is to resolve claims that Purdue Pharma’s pain medication, OxyContin, caused an opioid addiction crisis in the U.S. More than 850,000 people have died from opioid-related overdoses in the U.S. since 1999, according to the Centers for Disease Control and Prevention.

Purdue Pharma’s drug OxyContin was at the center of the first wave of overdose deaths in the early 2000s.

The funding would go to state and local governments, Native American tribes, and individual victims of the opioid epidemic. The Sacklers would also lose ownership of Purdue, and a new board appointed by state governments would oversee the restructured company.

Purdue would then shift its mission toward fighting the opioid crisis, including continuing to manufacture a low-cost version of naloxone, a drug that reverses overdoses.

The company’s plan still requires court approval but has gained momentum after years of legal battles, and the new approval from all 50 states could help the drugmaker win approval for bankruptcy reorganization in court. 

“We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good,” Purdue Board Chairman Steve Miller said.

“I sincerely thank our stakeholders for their dedication and collaboration, and I look forward to having the plan confirmed and consummated as quickly as possible.” 

A previous version had bankruptcy court approval but was rejected last year by the U.S. Supreme Court because it protected members of the Sackler family from civil lawsuits even though none of them filed for bankruptcy protection themselves.

The new agreement allows people to opt into the settlement to receive compensation. If they choose not to participate, they retain the right to sue the Sacklers themselves. 

The family’s total contribution depends in part on how many parties opt in and the outcome of certain asset sales. If funds reserved for lawsuits are not needed, they will be added to the main settlement.