A bankruptcy judge has approved a $7.4 billion settlement for Purdue Pharma and the Sackler family over their role in the US opioid crisis. The deal, which could end years of litigation, provides funds for victims and governments to address addiction.
On Friday, November 14, 2025, Judge Sean Lane announced he would sign the settlement, requiring the Sacklers to pay up to $7 billion over 15 years. They must also give up ownership of Purdue Pharma, which will be renamed Knoa Pharma and dedicated to fighting the opioid epidemic. The settlement received nearly unanimous support from creditors, with over 99% voting in favor. This marks a significant step in resolving one of the most complex bankruptcies in US history.
Purdue Pharma, the maker of OxyContin, filed for bankruptcy in 2019 facing thousands of lawsuits for allegedly fueling the opioid crisis through deceptive marketing. The crisis has been linked to approximately 900,000 deaths in the US since 1999, underscoring the profound public health impact. OxyContin, a prescription painkiller, was often the entry point to addiction for many individuals, leading to widespread legal actions.
The new agreement replaces a previous $6 billion settlement rejected by the Supreme Court in 2024, which would have granted the Sacklers immunity from lawsuits. Now, they remain vulnerable to future legal actions, and family members have denied wrongdoing while agreeing to the payments. This change addresses concerns about accountability, as the Sacklers’ assets, including offshore trusts, are now more accessible for potential claims.
Individual victims are eligible for up to $865 million in compensation, with payments expected to begin in 2026. However, only those who can prove a history of prescription may receive funds, and critics argue the amounts are insufficient for meaningful recovery. About 139,000 people have active claims, but estimates suggest only half may qualify, receiving roughly $8,000 to $16,000 each before legal fees.
State and local governments will receive the bulk of the settlement money, intended for opioid treatment and prevention programs. California Attorney General Rob Bonta emphasized that the funds will support efforts to mitigate the crisis’s effects on communities. This allocation aims to bolster public health initiatives, as overdose deaths have recently declined, partly due to such funded interventions.
The approval highlights the legal system’s role in addressing corporate misconduct and provides a model for future cases. A formal hearing is scheduled for November 18 to finalize the decision, after which the restructuring and fund distribution will proceed. The settlement is among the largest in opioid-related litigation, contributing to a total of about $50 billion from various drug companies.
Looking ahead, the resolution underscores ongoing efforts to hold entities accountable for public health crises and offers hope for reducing addiction rates through sustained funding and oversight. The restructuring of Purdue into a nonprofit focused on crisis response may set a precedent for corporate responsibility in similar scenarios.
