Purdue Pharma's Settlement Plan Approved: Sackler Family to Pay $7 Billion

Tue Nov 18 2025 16:13:05 GMT+0200 (Eastern European Standard Time)

A U.S. Bankruptcy Court judge is set to explain the approval of Purdue Pharma’s $7 billion settlement plan, which includes funds for opioid victims and a restructuring of the company.

A U.S. Bankruptcy Court judge will outline the reasons for approving Purdue Pharma's $7 billion settlement to resolve thousands of lawsuits connected to the opioid crisis. The Sackler family will primarily fund the settlement, with money earmarked for governments and individual victims. Purdue Pharma will undergo major changes, including rebranding and a shift in operational control, aiming to address the opioid epidemic more effectively.

A U.S. Bankruptcy Court judge is set to give his reasoning Tuesday for approving OxyContin maker Purdue Pharma’s plan to settle thousands of lawsuits over the toll of opioids.

The deal calls for members of the Sackler family who own the company to pay up to $7 billion over time.

Judge Sean Lane stated last week that he would accept the plan, which ranks among the largest opioid settlements ever and notably includes compensation for some victims of the crisis.

Distribution of Funds

Sackler family members agreed to pay up to $7 billion over a period of 15 years, providing the majority of the funds for the settlement.

The money entrusted for distribution to state, local, and Native American governments is intended primarily to combat the opioid crisis. Additionally, approximately $850 million will be allocated to individual victims, including children born experiencing opioid withdrawal.

Eligible individuals, including those addicted and survivors of overdose victims, must demonstrate they were prescribed OxyContin to partake in the payout, which varies from around $8,000 to $16,000 depending on their circumstances.

Ownership and Control Changes

As part of the settlement, the Sackler family will relinquish ownership of Purdue. However, since no family member has seated on Purdue’s board or taken any income from the company since 2018, this may not significantly alter their current positions.

The company is set to be transformed into a new entity, Knoa Pharma, which will operate under a board appointed by various states and focus on benefitting public health.

Furthermore, the Sacklers have consented to refrain from linking their names to funding institutions, a strategy they have executed previously.

Legal Dilemmas During the Bankruptcy Process

Purdue filed for bankruptcy protection in 2019 amid mounting lawsuits surrounding its role in the opioid epidemic.

A judge initially approved a settlement two years later; however, the U.S. Supreme Court later rejected that plan due to its protection of the Sackler family from lawsuits.

The newly approved settlement permits lawsuits against Sackler family members from individuals who opt not to be part of the agreement.

While the settlement has seen relatively few objections during the confirmation hearing, some individuals in recovery expressed concerns about the implications for the ongoing fight against the opioid crisis.