Purdue Pharma's New Bankruptcy Plan Aims to Resolve Opioid Crisis Lawsuits

Purdue Pharma has filed a new bankruptcy plan to settle opioid lawsuits with a minimum of $7.4 billion. The plan offers states, local governments, and individuals harmed by the opioid crisis compensation, with contributions from the Sackler family and Purdue. A judge will review the settlement.

Purdue Pharma is taking significant steps towards finalizing its opioid settlement, having filed a new bankruptcy plan valued at at least $7.4 billion. This comes after a U.S. Supreme Court ruling disrupted its previous settlement attempts last year.

The new plan, filed in White Plains, New York, outlines financial allocations to states, governments, and individuals affected by the opioid crisis attributed to OxyContin. It represents a collaborative effort between the company and creditors, who are expected to vote on the settlement soon.

Purdue aims to transform into a public benefit company to address opioid use disorder, while the Sackler family commits up to $7 billion to the settlement. The core goal remains to channel funds effectively to mitigate opioid-related harms in affected communities.

(With inputs from agencies.)