Overview
- U.S. Bankruptcy Judge Sean Lane said he will sign off on Purdue Pharma’s restructuring plan, with a full explanation and formal order expected at a hearing Tuesday.
- The court-approved deal totals about $7.4 billion, including up to roughly $7 billion from Sackler family members and $900 million from Purdue, and ends Sackler ownership.
- Purdue will be converted into Knoa Pharma, a foundation-owned enterprise expected to direct future profits to opioid treatment and overdose reversal medications.
- The settlement sets aside about $850 million for individual claimants, with typical payouts estimated around $8,000 to $16,000 and a dedicated allocation for children affected by neonatal withdrawal.
- Most funds flow to state, local, and tribal governments for abatement beginning next year, the plan drew near-unanimous support from represented parties, and non-monetary terms include document disclosures, naming restrictions, and limits on Sackler involvement in opioid businesses abroad.