Purdue Pharma Creditors Approve $7.4B Bankruptcy Settlement to Address Opioid Claims

Purdue Pharma's bankruptcy reorganization plan has received overwhelming support, with over 99% of creditors voting in favor of a $7.4 billion settlement to resolve thousands of lawsuits related to the opioid epidemic. The plan, which still requires court confirmation, includes contributions of up to $6.5 billion from the Sackler family, Purdue's owners, and aims to compensate local governments, individuals, and communities harmed by the company's opioid sales. Purdue's settlement is notable for allocating up to $850 million directly to individual victims and proposes creating Knoa Pharma, a public-benefit company to provide opioid-use disorder treatments and overdose-reversal medications at no profit. While the plan settles all civil claims against Purdue and its claims against the Sacklers, creditors retain the option to litigate directly against the Sacklers. This agreement marks a significant step toward ending a six-year legal battle stemming from accusations that Purdue misled the public about the addictive nature of OxyContin. A confirmation hearing for the plan is scheduled for the following month, signaling progress in the effort to address the opioid crisis repercussions.