Judge Expected to Approve Purdue Pharma Bankruptcy Plan, Unlocking Billions for Opioid Victims

Overview of the Settlement

Under the proposed restructuring plan, Purdue Pharma will be dissolved, and the Sackler family—its owners—will contribute up to $7 billion from their personal fortune to compensate states, localities, tribal nations, and other entities harmed by the opioid crisis.

How the Funds Will Be Distributed

The money will be allocated through a multi‑tiered trust that prioritizes:

• Public‑sector claimants such as state and local governments.
• Native American tribes that have sued over the impact on their communities.
• Individual victims and families who have suffered loss or injury.

Legal Background

The bankruptcy filing, first submitted in 2019, has been the subject of intense litigation. Plaintiffs argued that the Sacklers must bear personal responsibility, while the family maintained that the company’s assets alone should cover settlements.

Implications of the Ruling

If the judge signs off on the plan, it will represent one of the largest private‑sector settlements in U.S. history, providing a substantial financial resource for ongoing addiction treatment, prevention programs, and legal restitution.

Legal experts note that the approval could set a precedent for holding owners of other pharmaceutical companies personally accountable in future public‑health crises.