US Judge Set to Approve Purdue Pharma's $7bn Opioid Settlement and Transformation into Non-Profit
US bankruptcy judge Sean Lane is expected to approve Purdue Pharma's latest opioid-settlement plan, which requires the Sackler family members to contribute up to $7 billion and relinquish ownership as Purdue is converted into a new non-profit entity, Knoa Pharma.
This settlement replaces a prior agreement that was rejected by the US Supreme Court last year for improperly shielding Sackler family members from future lawsuits.
The plan is among the largest settlements in opioid litigation, part of approximately $50 billion in settlements by states and local governments addressing the opioid crisis.
The crisis has been linked to about 900,000 US deaths since 1999, many connected to shifts from prescription opioids to heroin and illicit fentanyl.
Purdue filed for bankruptcy in 2019 amid more than 2,600 lawsuits, with creditors including state and local governments, harmed individuals, hospitals, and others.
While the Sackler family members have expressed regret, they deny wrongdoing but will give up ownership under the settlement plan.
Under the plan, Purdue will be transformed into Knoa Pharma, a non-profit focused on overdose reversal and addiction-treatment medications.
Judge Lane planned to explain his decision at a Tuesday hearing.
