Purdue Pharma Bankruptcy Plan Approved: $7.4 Billion Settlement Marks Turning Point in Opioid Accountability

The long-running legal battle over Purdue Pharma’s role in the opioid epidemic has reached a turning point.

US Bankruptcy Judge Sean Lane has confirmed Purdue Pharma’s bankruptcy reorganization plan, finalizing a $7.4 billion nationwide settlement led by New York Attorney General Letitia James and joined by 55 state and territorial attorneys general.

This approval paves the way for billions in opioid abatement funding over the next 15 years, providing critical resources for treatment, prevention, and recovery programs—including those impacting pharmacies and healthcare providers on the front lines of the opioid crisis.

Key Details of the Settlement

Under the court-approved plan:

• The Sackler family will no longer have any ownership or involvement with Purdue Pharma.
• Purdue will be restructured into an independent nonprofit foundation focused on opioid abatement efforts.
• The company remains barred from marketing opioids, lobbying, or using opioid sales metrics for bonuses.
• A court-appointed monitor will oversee operations to ensure compliance. Excess revenue after expenses will be directed to state and local governments to fund public health and treatment initiatives.

In total, the settlement will deliver $7.4 billion in funding over 15 years.

The first payments—$1.5 billion from the Sacklers and $900 million from Purdue—are expected in early 2026, pending final settlement logistics.

Subsequent payments will include:

• $500 million after one year
• $500 million after two years
• $400 million after three years

New York State is expected to receive up to $250 million, while thousands of local governments across the country have opted in to receive funds.

Background: The Role of Purdue Pharma in the Opioid Epidemic

For decades, Purdue Pharma, under the Sackler family’s leadership, manufactured and marketed OxyContin and other opioid products. The company’s aggressive and deceptive marketing tactics—including minimizing addiction risks—are widely cited as contributing to waves of opioid addiction and overdose deaths across the United States.

Although overdose deaths have declined in some states, including New York, the impact remains severe. In 2024 alone, nine New Yorkers died each day from opioid-related overdoses.

The court’s approval of the bankruptcy plan marks the end of the Sacklers’ financial control over Purdue and a transition toward public health-driven oversight of the company’s assets.

A Nationwide Effort Toward Accountability

Attorney General James noted that the Sacklers “ran Purdue with one goal in mind: maximizing profits for their family, no matter the cost.” The broader goal of the settlement, she emphasized, is to ensure sustained funding for communities hit hardest by opioid addiction while establishing long-term accountability mechanisms in the pharmaceutical supply chain.

Beyond Purdue, Attorney General James has helped secure more than $3 billion for New York State through settlements with a range of opioid manufacturers, distributors, and consulting firms, including:

• Teva Pharmaceuticals, Johnson & Johnson, Mylan, Amneal, Mallinckrodt, Allergan, Endo, and Indivior
• Distributors McKesson, Cardinal Health, and AmerisourceBergen Pharmacy chains CVS, Walgreens, and Walmart
• Consulting and marketing firms McKinsey & Company and Publicis Health

Collectively, these settlements represent one of the largest public health recoveries in U.S. history, providing funding for addiction prevention, treatment, and recovery infrastructure nationwide.

Reference

James L. Attorney General James secures approval of Purdue bankruptcy plan. New York State Attorney General. Press Release. Published November 18, 2025. Accessed November 18, 2025. https://ag.ny.gov/press-release/2025/attorney-general-james-secures-approval-purdue-bankruptcy-plan