Bankruptcy Judge Approves $7.4 Billion Purdue Pharma Opioid Settlement
A bankruptcy judge has approved a $7.4 billion settlement involving Purdue Pharma and the Sackler family over their role in the US opioid crisis. The deal requires the Sackler family to relinquish ownership of Purdue, which will be taken over by Knoa Pharma as a purpose-driven company focused on addressing the opioid crisis.
This latest settlement exceeds a previous agreement by over $1 billion that the US Supreme Court rejected last year. Unlike the earlier deal, the new plan does not grant the Sacklers immunity from future lawsuits. The Sackler family is expected to contribute between $6.5 billion and $7 billion to the settlement.
Individual victims could receive up to $865 million, while the majority of the settlement funds will be directed to state and local governments to support treatment and prevention programs. Purdue Pharma filed for bankruptcy in 2019 amid thousands of lawsuits alleging it fueled the opioid epidemic and pleaded guilty in a separate Department of Justice criminal case in 2020.
The settlement aims to resolve a lengthy legal battle and provide funding for addiction treatment, prevention, and recovery initiatives across the US. The opioid crisis has been linked to approximately 900,000 deaths in the US since 1999. Over 99% of creditors voted in favor of the restructuring plan in October, according to Purdue Pharma.
