NY Judge to Approve Purdue Pharma Opioid Settlement

A federal bankruptcy court judge in New York on Friday announced his intention to approve a revised settlement agreement by Purdue Pharma, the maker of OxyContin, resolving thousands of lawsuits tied to the U.S. opioid crisis. U.S. Bankruptcy Judge Sean Lane, overseeing the case in the Southern District of New York, stated he would confirm the plan formally during a hearing on Tuesday, marking a potential end to one of the most protracted corporate bankruptcies in American history.

The agreement requires members of the Sackler family, who own the Connecticut-based company, to contribute up to $7 billion from their personal fortunes over 15 years and relinquish all ownership stakes. Purdue, which filed for Chapter 11 protection six years ago amid claims exceeding trillions of dollars, will dissolve and reform as Knoa Pharma, a public benefit company. Under new oversight, it will produce limited quantities of opioid painkillers and overdose reversal drugs, directing future profits toward addressing opioid-related harm, with operations possibly resuming in spring 2026.

This settlement replaces a prior version rejected by the U.S. Supreme Court last year, which the justices deemed...