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New York: $250 million
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North Carolina: $150 million
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New Jersey: $125 million
The plan will be voted on following approval of a disclosure statement at a New York bankruptcy court hearing Wednesday.
Supreme Court Ruling Forces Major Overhaul
This latest settlement wasn’t born in a vacuum—it emerged from the wreckage of Purdue’s earlier plan, which was overturned in June 2024 when the Supreme Court ruled that Chapter 11 of the Bankruptcy Code does not authorize nonconsensual third-party liability releases.
That ruling dismantled a key provision shielding the Sacklers from lawsuits without direct claimant approval. The new plan incorporates a workaround: an opt-in mechanism, where claimants must affirmatively consent to releasing their direct claims against the family.
Purdue to Morph into a Public Trust
Perhaps the most transformative element of the plan? The Sacklers will lose all control of Purdue Pharma. If approved, Purdue’s assets will be transferred to a new public benefit company, whose sole mission will be to provide opioid rescue medications, addiction treatment, and resources for abatement.
“This plan will deliver billions of dollars to compensate victims, abate the opioid crisis, and deliver life-saving medicines,” Purdue stated. “Unanimous support from every state and territory is a milestone.”
