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Purdue Pharma Sentenced, Clearing Way for Dissolution and Over $5 Billion in Penalties

The ruling unlocks a bankruptcy plan that shifts Purdue’s assets to a public benefit company.

Tanny Austin cries while looking at tombstones with the names of victims of the opioid crisis, including her son Sean Austin, during a rally outside of a courthouse in Newark, N.J., Tuesday, April 21, 2026. (AP Photo/Seth Wenig)
Bottles of prescription painkiller OxyContin made by Purdue Pharma LP sit on a shelf at a local pharmacy in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File Photo
People rally outside a courthouse while a hearing for Purdue Pharma takes place inside in Newark, N.J., Tuesday, April 21, 2026. (AP Photo/Seth Wenig)
Opioid manufacturer Purdue Pharma LP was sentenced Tuesday in Newark federal court and ordered to pay criminal penalties of over $5 billion for its role in fueling the opioid epidemic, according to a statement from the U.S. Attorney’s Office District of New Jersey.

Overview

  • Purdue Pharma was sentenced Tuesday in Newark to pay more than $5 billion for fraud and kickback schemes tied to OxyContin.
  • The ruling clears a bankruptcy plan that will dissolve the company and start Knoa Pharma on Friday, May 1.
  • The court set a $3.544 billion criminal fine and a $2 billion forfeiture, with up to $1.775 billion credited through the bankruptcy process.
  • Settlement terms include up to $7 billion from Sackler family members and an $865 million fund that pays most individuals about $8,000 to $16,000.
  • No Purdue executives or Sackler family members were charged in the case, and victims who addressed the court criticized the deal and the limited personal accountability.