Bankruptcy Judge Approves $7.4 Billion Settlement for Purdue Pharma in Opioid Litigation

NEW YORK — November 20, 2025 — A bankruptcy judge has approved a $7.4 billion settlement agreement that allows Purdue Pharma, the maker of OxyContin, to resolve thousands of lawsuits related to the opioid epidemic, according to court officials. The settlement marks a significant step toward addressing the widespread legal claims against the company, which has faced extensive scrutiny over its role in the opioid crisis.

The agreement permits Purdue Pharma to pay up to $7.4 billion to settle claims filed by states, municipalities, and other entities alleging the company contributed to the opioid epidemic through its marketing and distribution practices. The settlement is designed to provide funds for addiction treatment, prevention programs, and other public health initiatives aimed at combating opioid abuse.

The settlement comes after years of litigation involving Purdue Pharma, which filed for bankruptcy in 2019 amid mounting lawsuits. The company’s bankruptcy proceedings have been closely watched as a potential model for resolving mass tort claims linked to the opioid crisis. The judge’s approval clears a major hurdle in the bankruptcy case, allowing the settlement to move forward.

Under the terms of the agreement, Purdue Pharma will contribute cash and other assets, including the rights to its drug formulas and intellectual property. The settlement also includes provisions for the Sackler family, which owns Purdue Pharma, to contribute funds without admitting wrongdoing. The family has faced separate legal challenges but has sought to limit its liability through the settlement process.

Officials emphasized that the settlement is intended to provide resources to communities affected by opioid addiction while allowing Purdue Pharma to exit bankruptcy and continue operations under a restructured business model. The funds are expected to be distributed over several years to support treatment and prevention efforts nationwide.

The opioid epidemic has resulted in hundreds of thousands of deaths in the United States over the past two decades, prompting widespread legal action against pharmaceutical companies, distributors, and pharmacies. Purdue Pharma’s OxyContin has been at the center of many lawsuits alleging aggressive and misleading marketing contributed to widespread addiction.

While the settlement resolves claims against Purdue Pharma, other companies involved in the opioid supply chain continue to face litigation. The approval of this settlement may influence ongoing negotiations and court proceedings involving other defendants.

The judge’s ruling follows extensive negotiations among the parties, including state attorneys general, local governments, and representatives of the Sackler family. The settlement was subject to court review to ensure it meets legal standards and fairly addresses the interests of claimants.

With the approval, Purdue Pharma is expected to emerge from bankruptcy in the coming months, operating under a new structure aimed at balancing business continuity with public health responsibilities. The settlement represents one of the largest financial resolutions related to the opioid crisis to date.

Authorities and public health experts continue to monitor the implementation of the settlement funds to assess their impact on reducing opioid-related harm. The case underscores the ongoing challenges in addressing the consequences of the opioid epidemic through legal and public health measures.