Purdue Pharma Bankruptcy Plan Approved by NY AG

New York – A landmark moment in the opioid crisis saga unfolded as New York Attorney General Letitia James secured approval of Purdue Pharma’s bankruptcy plan. U.S. Bankruptcy Judge Sean Lane confirmed the plan, a crucial step toward finalizing the $7.4 billion settlement with Purdue and its owners, the Sackler family.

“For decades, the Sacklers ran Purdue with one goal: maximizing profits at any cost,” AG James commented. “Purdue was at the heart of the opioid crisis, fueling addictions through deceptive marketing.”

Pursued by AG James, the settlement aims to deliver critical funding for communities ravaged by the crisis. Under the plan, the Sacklers will lose all ties with Purdue, which will be owned by an independent nonprofit and barred from marketing opioids.

AG James announced the $7.4 billion settlement in January 2025, to fund addiction treatment, prevention, and recovery programs for 15 years. The Sacklers are set to pay $1.5 billion, with Purdue contributing roughly $900 million, with subsequent payments totaling over $3 billion.

New York will receive up to $250 million from the settlement, adding to the state’s more than $3 billion secured from opioid manufacturers and distributors, including Mylan, Johnson & Johnson, and CVS.

Joining AG James in this historic effort were attorneys general from 55 states and U.S. territories, reflecting a united front against the opioid epidemic.