Archive · 15 Nov 2025
Judge Approves Purdue Pharma's Revised Bankruptcy Plan, Sackler Settlement
A company called Purdue Pharma made a pain medicine called OxyContin that caused a lot of addiction and harm.
They went bankrupt because of many lawsuits.
A special judge had to decide how to settle everything.
The family that owned Purdue, the Sacklers, had to pay a lot of money, about $6.5 billion, over many years.
This is a new plan because an older one was rejected by a higher court for protecting the family too much.
This new plan allows people to still sue the Sacklers if they want, and it does not prevent criminal charges.
Most of the money from the settlement will go to help fix the opioid problem across the country.
A smaller part, around $850 million, will go directly to people who were hurt by the medicine.
Purdue Pharma will also change its name to Knoa Pharma and will focus on making medicines to help people with addiction and overdose.
Almost everyone who had a say voted yes for this new plan, even though a few people still felt it wasn't enough to make up for all the harm done.
Purdue Pharma has received court approval to exit bankruptcy with a revised settlement plan involving the Sackler family.
The Sackler family will contribute approximately $6.5 billion over 15 years as part of the settlement.
The revised plan addresses concerns raised after the Supreme Court rejected a prior agreement that had provided broad legal immunity to the Sacklers.
Funds from the settlement will be allocated to nationwide opioid abatement efforts and about $850 million for individual victims.
Purdue Pharma will be renamed Knoa Pharma, with its future profits dedicated to developing addiction and overdose treatment medications.
- Who
- Federal bankruptcy court judge Sean H. Lane, Purdue Pharma, the Sackler family, creditors (including states, local governments, individuals, etc.), and individual objectors.
- What
- Court approval of Purdue Pharma's Chapter 11 bankruptcy exit plan, including a revised settlement with the Sackler family over the opioid crisis.
- When
- Judge announced intention to sign off on Friday, November 14, 2025, with a full ruling to follow next week. Bankruptcy was filed in 2019.
- Where
- US Bankruptcy Court for the Southern District of New York.
- Why
- To resolve thousands of lawsuits related to Purdue's marketing and production of OxyContin, provide compensation to victims and governments, and allow Purdue to exit bankruptcy.
Individual Objectors
Purdue Pharma & Majority Creditors
Adequacy of Relief for Sacklers
Individual Objectors
Some individuals representing themselves expressed concerns over the extent of relief afforded to the Sackler family.
Purdue Pharma & Majority Creditors
The judge clarified that the revised plan does not force settlements against the Sackler family and that bankruptcy proceedings do not relieve parties of criminal liability.
Compensation vs. Finality
Individual Objectors
Concerns that the settlement may not adequately compensate victims for the harm caused by opioid addiction.
Purdue Pharma & Majority Creditors
Purdue's attorney argued the plan is the best available outcome to conclude the bankruptcy and allow funds to flow, acknowledging it cannot fully address the suffering caused.
- Court Approval
- US Bankruptcy Court for the Southern District of New York approved Purdue Pharma's Chapter 11 plan.
- Sackler Family Contribution
- Approximately $6.5 billion over 15 years, subject to reserves.
- Previous Plan Rejection
- US Supreme Court overturned a prior iteration that provided blanket legal liability shield for Sacklers.
- Individual Victim Compensation
- Roughly $850 million allocated for individuals and families with addiction-related claims.
- New Company Name
- Purdue Pharma to be renamed Knoa Pharma, a public benefit company.
- Creditor Support
- Over 99% of voting creditors supported the updated settlement plan.
- Purdue's Bankruptcy Filing
- Filed in 2019 due to over 2,600 opioid addiction lawsuits.
