Purdue Pharma has filed a revised bankruptcy plan, seeking to finalize a $7.4 billion opioid settlement after the U.S. Supreme Court rejected its previous proposal. The new plan details how funds will be distributed to states, local governments, and individuals affected by the opioid crisis. Purdue expects strong creditor support and plans to begin soliciting votes in May before seeking final approval from a bankruptcy judge. The proposal comes nine months after the Supreme Court ruled that the earlier settlement, which shielded the Sackler family from lawsuits, exceeded the bankruptcy court’s authority. This revised plan allows creditors to opt in to receive payments, while those who decline can continue legal action against the Sacklers.
The Sackler family has agreed to contribute between $6.5 billion and $7 billion, an increase of $1 billion from the previous deal. Purdue will add $900 million and restructure itself into a public benefit company focused on producing treatments for opioid addiction and overdose reversal. The plan allocates approximately $850 million to individuals affected by opioid use, including those who became addicted to OxyContin and babies born with withdrawal symptoms. Purdue Chair Steve Miller emphasized that the updated plan will provide essential funds to communities impacted by the crisis.
