New York, USA – A federal bankruptcy judge has tentatively approved Purdue Pharma’s latest settlement deal, requiring the Sackler family to contribute up to $7 billion over 15 years to resolve thousands of lawsuits tied to the opioid crisis.

The deal, overseen by US Bankruptcy Judge Sean Lane, allocates part of the funds to victims of opioid addiction while addressing ongoing legal disputes involving the company’s owners.

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Background: A New Settlement After Supreme Court Rejection

This agreement replaces a previous deal rejected by the US Supreme Court last year, which improperly shielded Sackler family members from future lawsuits. In the new plan, non-participating entities retain the right to sue, while Sackler assets will be used to fund opioid crisis relief.

The settlement has won broad backing from lawyers representing Purdue, government entities, Native American tribes, and individuals affected by the epidemic. Out of over 54,000 personal injury claimants, only 218 objected to the plan.

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Key Provisions of the Settlement

• Sackler family contribution: Up to $7 billion over 15 years
• Company name change: Purdue Pharma to Knoa Pharma
• Victim compensation: ~$850 million allocated for individuals, including $100 million for children born with opioid withdrawal
• Family restrictions: Sacklers barred from involvement in opioid-selling companies and charitable naming rights
• Transparency: Company documents will be publicly released, including many previously protected by lawyer-client privilege

Lawyers estimate qualifying individuals could receive $8,000–$16,000 each, depending on prescription history, before legal fees.

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Impact on the Opioid Crisis

The settlement aims to fund state and local efforts to combat opioid addiction, which has caused over 900,000 deaths in the US since 1999, including those from heroin and fentanyl. Previous opioid settlements total about $50 billion, though tracking their effectiveness has been inconsistent.

While some victims argue the individual compensation is insufficient, attorneys contend the deal is the most practical way to secure funds and avoid prolonged litigation against the Sackler family.

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Next Steps

The judge will formally explain his decision in a hearing on Tuesday, November 19, 2025, and if finalized, the company’s name change and new governance structure are expected in spring 2026.

The settlement could mark a major milestone in holding Purdue Pharma and its owners accountable for their role in the opioid epidemic.