Bankruptcy judge clears $7.4bn Purdue Pharma opioid settlement

November 14, 2025

A bankruptcy judge has approved a $7. 4 billion settlement requiring Purdue Pharma and the Sackler family to pay for their role in America's opioid epidemic, which has caused approximately 900,000 deaths since 1999. This agreement represents an increase of over $1 billion from a previous settlement that the Supreme Court rejected because it inappropriately shielded the Sacklers from future lawsuits despite them not filing for bankruptcy themselves.

Who is affected

The Sackler family (billionaire owners of Purdue Pharma)
Purdue Pharma and its board
Opioid addiction victims and their families
State and local governments across the US
Native American tribal governments
California and 54 other states (attorneys general)
Individual creditors and personal injury victims
People struggling with addiction who will receive treatment funding

What action is being taken

A bankruptcy judge is signing off on the $7.4 billion settlement deal
The Sacklers are relinquishing ownership of Purdue Pharma
A nonprofit called Knoa Pharma is taking over as a "purpose-driven company with the mission to address the opioid crisis"
The Sackler family members are contributing between $6.5 billion and $7 billion as part of the agreement

Why it matters

This settlement brings accountability to Purdue Pharma and the Sackler family for their role in the opioid epidemic, which has been linked to 900,000 deaths in the US since 1999. The agreement releases long-sought funding for addiction treatment, prevention, and recovery programs across the country. Unlike the previous rejected settlement, this deal does not grant the Sacklers immunity from future opioid-related lawsuits, ensuring they can still be held legally accountable. The overwhelming support from creditors and government groups demonstrates broad consensus that this resolution will provide substantial resources to communities devastated by the crisis.

What's next

No explicit next steps stated in the article

Read full article from source: BBC