Update: Purdue Files New Chapter 11 Bankruptcy Plan
On March 18, 2025, bankrupt drugmaker Purdue Pharma LP and its affiliated debtors filed their Thirteenth Amended Joint Chapter 11 Plan of Reorganization. The revised plan includes $900 million from the debtor and another $6.5 billion from members of the Sackler family. The new plan replaces an earlier one that was rejected by the U.S. Supreme Court because it included involuntary third-party releases that shielded members of the Sackler family from liability for opioid-related claims filed by states, local governments and individuals despite the fact that they had not filed for bankruptcy.
Similar to the earlier plans, the company will be reorganized into a public benefit trust designed to pay claims resulting from the nationwide opioid crisis. Opioid claimants will have the option to release their claims against the members of the Sackler family in exchange for a share of the $7.4 billion settlement fund. Claimants who decline to release their claims against the family will only be eligible for a share of the $900 million to be paid by the company.
Another hearing will be scheduled to take place to determine whether the plan is sufficient to allow the creditors to vote; in the interim Purdue has requested an additional 57 day extension of the Sackler claim injunction.
March 18, 2025
The Purdue Pharma bankruptcy case, which began in 2019, has left tens of thousands of opioid victims still waiting for compensation. Despite the staggering toll of opioid addiction, estimated at over 800,000 deaths—the legal proceedings have dragged on for five years with no direct payments to those who have suffered the most.
Of the 140,000 claimants in the case, only 10% are individuals directly impacted by opioid use disorder (OUD) and addiction. The remaining 90% consist of states, pharmacies, hospitals, insurance companies, and the 41 law firms involved in litigation. This breakdown raises concerns about who truly benefits from the bankruptcy settlement and whether victims are being sidelined in favor of institutional creditors.
Originally positioned as a way to hold Purdue Pharma accountable and provide restitution to those harmed by its aggressive marketing of OxyContin, the bankruptcy proceedings have instead become a prolonged legal battle. Meanwhile, victims and their families continue to struggle with the devastating consequences of opioid addiction without meaningful relief.
As the legal process drags on, the fundamental question remains: When will the victims finally see justice? The recent 60 Minutes investigation (aired on March 9, 2025) sheds light on the ongoing delays and the imbalance in compensation. Without a resolution that prioritizes those who have suffered the most, the Purdue Pharma case risks becoming yet another example of a system that protects institutions over individuals.
For those affected by the opioid crisis, time is not a luxury they can afford. The legal system must act swiftly to ensure that justice is not only promised but delivered.
Litigation Update: Opioid Settlement with Sackler Family
January 30,2025
On January 23, a coalition of 15 states announced that they had reached a $7.4 billion settlement with the Sackler family and Purdue Pharma Inc. The states include California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, New York, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia. Under the terms of the agreement, the Sacklers will pay up to $6.5 billion over 15 years and Purdue will pay $900 million. The new settlement exceeds the original 2021 deal by $3.1 billion and does not include the nonconsensual releases sought by the Sackler family that were invalidated by the U.S. Supreme Court in June 2024 at the same time the high court rejected the previous $6 billion settlement.
This deal ends the Sackler family’s ownership control over Purdue Pharma, the company credited with instigating the decades-long opioid crisis that began with the 1996 introduction of its powerful painkiller OxyContin to the market; Purdue continued to fuel the drug epidemic through its manufacture of highly addictive opioid products and its use of aggressive marketing techniques that downplayed the risk of addiction inherent in their use.
The Sackler/Purdue deal is the latest in a series of settlements reached with other manufacturers, retailers and distributors of opioids valued at $50 billion. There are still some states who have not yet agreed to sign onto the latest settlement, including Washington state.
The new deal provides for an immediate payment of $1.5 billion, $500 million after one year and an additional $500 million after two years, plus another $400 million after three years.
