The lawsuit filed Monday accuses Purdue Pharma of falsely promoting the drug as not addictive even as it emerged as among the most widely abused in the United States.
State Attorney General Xavier Becerra accused Purdue and its former president, Richard Sackler, of stoking the crisis through its irresponsible practices.
America's most populous state is the latest to join a number of lawsuits against Purdue Pharma as the country grapples with a rising number of fatal drug overdoses linked to opioids.
Purdue settled a lawsuit by the state of Oklahoma in March for $270 million. The company has also said it is pursuing several options, including bankruptcy.