Judge Signs Off on Purdue Pharma Deal, Clearing Way for Billions in Opioid Crisis Payouts

A federal bankruptcy judge has signed off on a landmark settlement that will force the Sackler family to pay billions of dollars and permanently relinquish control of Purdue Pharma, marking a major turning point in one…

Andrew PowellNov 18, 20253 min read

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settlement that the U.S. Supreme Court struck down last year, ruling that it improperly shielded Sackler family members from future lawsuits. Under the new terms, governments and victims who do not opt in can still take family members to court — a key change that allowed the plan to move forward with far fewer objections.

As part of the agreement, the Sacklers will give up ownership of Purdue completely, though their involvement in company operations had already ended in 2018.

Purdue will be restructured into a new entity called Knoa Pharma, overseen by a board appointed by state officials and tasked with operating under a public-interest mission. The family also agreed to stop having their name attached to institutions in exchange for donations.

Purdue will additionally release a large collection of internal documents, a move that could reveal new details about how the company marketed and monitored its blockbuster painkiller OxyContin.

The ruling brings the sprawling legal war over Purdue one step closer to its conclusion. The company sought bankruptcy protection in 2019 while facing thousands of lawsuits from governments and individuals who accused it of fueling the modern opioid epidemic.

A settlement approved two years later was thrown out by the Supreme Court over liability protections granted to the Sacklers despite their not filing for bankruptcy.

This time, the agreement drew only limited opposition, with a handful of individuals — including people battling addiction and family members of those who died — raising concerns during last week’s three-day hearing.

The Purdue settlement is one of the largest in a series of opioid-related agreements totaling roughly $50 billion across drugmakers, distributors, and pharmacies.

With Judge Lane’s approval, billions of dollars are now set to be released for addiction treatment, recovery programs, and compensation for victims, potentially closing one of the most contentious chapters in the nation’s response to the Opioid crisis.