Court Approves Multibillion-Dollar Deal
A bankruptcy judge approved a $7.4bn settlement on Friday, requiring Purdue Pharma and the Sackler family to pay for their role in the US opioid crisis. The decision ends a long legal struggle to hold the OxyContin-maker and its owners responsible. It also releases long-delayed funds intended to help people battling addiction. Purdue filed for bankruptcy in 2019 after thousands of lawsuits accused the firm of driving the opioid epidemic.
Revised Plan Increases Total Payment
The new agreement adds more than $1bn to a previous deal rejected by the Supreme Court last year. Purdue board chairman Steve Miller said the ruling marks a decisive moment that moves the case close to its conclusion. He said the plan unlocks billions in recoveries and brings important non-financial reforms.
New Nonprofit Will Replace Purdue
The settlement forces the Sacklers to surrender control of the company. A nonprofit named Knoa Pharma will take over and focus on confronting the opioid crisis. Purdue became widely known for producing and promoting OxyContin, a painkiller that often led users toward heroin and other dangerous drugs. The medication has been blamed for worsening a crisis tied to about 900,000 US deaths since 1999.
Marketing Claims at the Heart of Lawsuits
Thousands of lawsuits alleged that Purdue and Sackler family members pushed OxyContin aggressively while hiding addiction and overdose risks. Purdue pleaded guilty in 2020 in a separate criminal case brought by the Department of Justice. That plea did not resolve the many civil cases filed by states, local governments, tribal nations, and other groups, which helped drive the firm into bankruptcy.
Supreme Court Blocks Previous Sackler Shield
A past settlement attempted to protect the Sacklers from future civil lawsuits, even though they never filed for bankruptcy. The Supreme Court ruled those protections unlawful. The new $7.4bn agreement grants no immunity from future opioid-related claims. The Sacklers are expected to contribute between $6.5bn and $7bn and continue to deny wrongdoing.
Victims Set to Receive Direct Payouts
Some individuals argued that the settlement still fell short in compensating victims. Individual victims may receive up to $865m. Despite objections, the plan received overwhelming support from personal injury claimants and government groups. Purdue said in October that more than 99% of creditors approved the restructuring.
States Aim to Improve Treatment Access
Most settlement funds will go to state and local governments. Officials said the money will support addiction treatment, prevention programmes, and long-term recovery services nationwide. California Attorney General Rob Bonta said in June that holding Purdue and the Sacklers responsible brings vital support to communities harmed by the crisis.
