Purdue Emerges from Bankruptcy with $7.4B Opioid Settlement Finalized

Purdue Pharma has received court approval to exit bankruptcy after six years of legal proceedings, marking a significant conclusion to one of the most complex corporate bankruptcies in U.S. history. U.S. Bankruptcy Judge Sean Lane confirmed the settlement plan during a hearing on November 14, 2025, with a detailed ruling expected in the following week. The deal involves a $7.4 billion settlement to address the nationwide harm caused by the company's opioid products, including OxyContin.

Under the revised agreement, members of the Sackler family, who own the company, will contribute approximately $6.5 billion in installments over 15 years. The Sacklers have also agreed to relinquish ownership of Purdue and are barred from profiting from their company's future profits. The settlement was revised after the U.S. Supreme Court rejected a previous version in 2024, ruling that it improperly shielded the Sackler family from future lawsuits.

The court-approved plan allows creditors who opt out to pursue lawsuits against the Sackler family, a change necessitated by the Supreme Court's earlier rejection. This provision was designed to align with the court's ruling and ensure broader acceptance among creditors. The settlement was supported by nearly all stakeholders, including all 50 states, cities, and individuals impacted by the opioid crisis. Only a small fraction of personal injury victims-218 out of 54,000-voted against the plan, while many others did not vote.

A Shift in Corporate Accountability

The Sackler family has faced intense scrutiny for their role in the opioid crisis, which has led to over 900,000 deaths in the U.S. since 1999. Under the new settlement, family members are also prohibited from having their names associated with charitable institutions and from participating in opioid sales overseas. Additionally, a vast majority of internal company documents, including emails and other communications, will be made public. These provisions aim to increase transparency and ensure that the Sacklers are held accountable for their actions.

The Sacklers, who have denied any wrongdoing, will not receive immunity from future litigation. Instead, they will be required to contribute funds to the settlement and give up any financial stake in Purdue Pharma. The company will be rebranded as Knoa Pharma, a nonprofit organization focused on developing and distributing opioid overdose reversal and addiction treatment medications. This transition reflects an effort to transform Purdue's legacy into a tool for combating the very crisis it contributed to.

A Historic Settlement and Its Impact

The settlement ranks among the largest in a series of opioid-related legal actions, with total settlements from these cases reaching about $50 billion. Most of the funds will go to state and local governments for efforts to mitigate the opioid epidemic. A portion-$850 million-has been set aside for individual victims of the crisis, including $100 million to support children born with opioid withdrawal symptoms.

Purdue's bankruptcy plan has received broad support from creditors, many of whom voted in favor of the agreement. The settlement also includes provisions to protect individuals with addiction from future legal challenges by the Sackler family. This approach was championed by some legal representatives who argued that the settlement offered the best possible outcome for victims who might otherwise face significant legal and financial hurdles.

The final approval of the plan closes a long chapter in the legal history of Purdue Pharma and the Sackler family. Judge Lane emphasized that the bankruptcy process does not absolve any parties of criminal liability, leaving the door open for future investigations. This settlement, while not perfect in the eyes of some victims, represents a significant step toward addressing the widespread damage caused by Purdue's opioid products.