Purdue Pharma Unveils $7.4B Bankruptcy Plan to Settle Opioid Lawsuits

Purdue Pharma has filed a revised bankruptcy plan to finalize a $7.4 billion opioid settlement after the U.S. Supreme Court blocked its previous deal. The plan seeks to resolve lawsuits accusing the company’s painkiller, OxyContin, of fueling the opioid crisis.

The proposal, filed in White Plains, New York, outlines fund distribution to states, local governments, and individuals harmed by opioid addiction. Purdue expects strong creditor support and will begin soliciting votes in May before seeking final approval from a bankruptcy judge.

The Supreme Court had rejected Purdue’s previous settlement for granting the Sackler family, the company’s owners, broad legal immunity despite not filing for bankruptcy themselves. The revised plan allows creditors to opt in for settlement payments or pursue legal action against the Sacklers, who have pledged $6.5 to $7 billion—$1 billion more than before—to the new deal. Purdue will contribute $900 million and transition into a public benefit company focused on opioid addiction treatment and overdose prevention.

Under the new plan, approximately $850 million will be allocated to individuals affected by opioid addiction, including those prescribed OxyContin and babies born with withdrawal symptoms.

Purdue Chair Steve Miller emphasized the company’s commitment to delivering crucial funds to communities impacted by the crisis. The settlement ensures that funds provided to state and local governments will be used for opioid harm reduction efforts.

The new agreement marks a critical step in Purdue Pharma’s efforts to address the nationwide opioid epidemic, providing financial relief and support for affected individuals while holding the Sacklers accountable under revised legal terms.