Purdue Pharma’s $7.4 Billion Opioid Settlement and Bankruptcy Filing
Purdue Pharma filed a new Chapter 11 Plan of Reorganization in March 2025, proposing a settlement of over $7.4 billion36.
The Sackler family, former owners of Purdue, will contribute between $6.5 billion and $7 billion over 15 years as part of the settlement26.
This new plan follows a Supreme Court ruling in June 2024 that invalidated Purdue's previous settlement arrangement36.
The settlement funds will be distributed to communities over 15 years to support opioid addiction treatment, prevention, and recovery programs1.
Under the new plan, creditors must opt in to receive payments, preserving their right to sue the Sacklers if they choose not to participate6.
The settlement includes the release of over 30 million documents related to Purdue and the Sacklers' opioid business1.
Massachusetts will receive up to $108 million from the settlement funds1.
The plan will end the Sacklers' control of Purdue and prohibit them from selling opioids in the United States12.
Only about 10% of the total settlement amount is expected to go directly to victims, according to some critics4.
The bankruptcy court is set to review the plan for confirmation or amendments in May 20256.
Sources:
1. https://www.mass.gov/news/ag-campbell-helps-secure-74-billion-up-to-108-million-for-massachusetts-from-purdue-pharma-and-the-sackler-family-for-fueling-the-opioid-crisis
2. https://www.biospace.com/policy/purdue-pharma-sacklers-settle-opioid-lawsuits-for-7-4b
3. https://www.thepharmaletter.com/purdue-files-new-bankruptcy-plan
4. https://www.cbsnews.com/news/purdue-pharma-bankruptcy-opioid-settlement-60-minutes/
6. https://www.biospace.com/business/purdue-files-for-bankruptcy-anew-to-support-7-4b-opioid-settlement