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Purdue Pharma Set for Sentencing, Clearing Path to $7.4 Billion Opioid Settlement

The outcome would release billions for public programs under a deal that protects Sackler family members.

Overview

  • Purdue Pharma, scheduled for sentencing Tuesday in New Jersey federal court, would be able to activate a $7.4 billion settlement once the judge enters the criminal judgment.
  • The company admitted it paid kickbacks to doctors and misled federal drug regulators about efforts to stop illegal use, and no executives or owners were charged in the latest case.
  • The plan would dissolve Purdue and create Knoa Pharma with a board appointed by states to focus on addiction treatment and overdose-reversal medicines, with emergence from bankruptcy targeted for May 1.
  • Members of the Sackler family agreed to contribute up to $7 billion over 15 years and would receive protection from future opioid lawsuits tied to Purdue as part of the deal.
  • Most money will go to state and local governments, while individuals would draw from an $865 million fund with estimated payments of about $8,000 to $16,000, a scale that many victims criticized in court statements.