Supreme Court Ruling Forces Rewrite—and Bigger Payouts
New Plan Complies With Landmark 2024 Decision
This is not Purdue’s first confirmed restructuring plan. In 2021, the bankruptcy court approved a prior proposal that relied on non-consensual third-party releases shielding the Sacklers from lawsuits. But the U.S. Trustee appealed, and the Supreme Court struck down the releases in June 2024, ruling they violate the bankruptcy code.
After months of renewed mediation, the parties returned with a revised plan that bolsters the Sackler contribution and adds an opt-in mechanism to align with the Supreme Court’s ruling. The new structure preserves creditor choice while still offering a unified path to distribute billions nationwide.
Bench Ruling Set for Tuesday
Judge Lane scheduled a 10 a.m. hearing on Tuesday, Nov. 18, to issue the full bench ruling and formally sign off on the order confirming the Purdue $7.4B Chapter 11 Plan.
The ruling is expected to accelerate one of the most consequential mass-tort restructurings in U.S. history—an effort years in the making, forged in the aftermath of a public health catastrophe that touched nearly every corner of the nation.
