Overview
- Purdue’s bankruptcy plan, which took effect Friday, dissolved the company and launched Knoa Pharma, with first payments of about $900 million from Purdue and $1.5 billion from Sackler family members.
- A New Jersey federal court on April 28 ordered Purdue to pay more than $5 billion in criminal penalties for its role in the opioid epidemic.
- Knoa will operate as a public-benefit drugmaker under nonprofit oversight, cannot lobby or advertise opioids, and must send any excess revenue to governments for abatement efforts.
- Settlement money will roll out over 15 years to states and localities for treatment, prevention and recovery, with Illinois set to receive $148.8 million and Missouri more than $91 million.
- The deal bars Sackler family members from selling opioids in the U.S., requires public release of about 30 million Purdue documents to UCSF and Johns Hopkins, and offers limited individual payouts of up to roughly $16,000.