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Judge Says He Will Approve Purdue Pharma Opioid Settlement Requiring Up to $7 Billion From Sacklers

The revised bankruptcy plan follows the Supreme Court's rejection of broad legal protections for the family.

FILE - Jen Trejo holds a photo of her son Christopher as she is comforted outside the Supreme Court Dec. 4, 2023, in Washington. (AP Photo/Stephanie Scarbrough, File)
FILE - Advocates for opioid victims gather around a banner made by artist Fernando Luis Alvarez during a protest outside the Department of Justice, Dec. 3, 2021, in Washington. (AP Photo/Carolyn Kaster, File)
FILE - Purdue Pharma's headquarters stands in Stamford, Conn., Oct. 21, 2020. (AP Photo/Mark Lennihan, File)
FILE - Several 5-mg pills of Oxycodone are seen June 17, 2019, in Zelienople, Pa. (AP Photo/Keith Srakocic, File)

Overview

  • U.S. Bankruptcy Judge Sean Lane said he will approve the plan and will explain his decision at a hearing on Tuesday.
  • The deal would end years of litigation by transferring company ownership and securing a multibillion-dollar contribution from Sackler family members.
  • Most funds are slated for state and local governments to address the opioid crisis, with about $850 million reserved for individuals, including estimated payments of roughly $16,000 for long-term prescription claimants and $8,000 for shorter-term claimants.
  • Non-financial terms include a company name change, new oversight dedicating future profits to opioid response, public release of extensive documents, limits on Sackler philanthropic namings, and restrictions on certain family members’ opioid business activities abroad.
  • Entities that do not opt into the settlement may sue Sackler family members, and support for the plan was broad, with only 218 of more than 54,000 personal-injury voters opposing it.