Sackler Family Is Out of the Opioid Business for Good

A federal bankruptcy court has formally approved OxyContin maker Purdue Pharma's plan to settle thousands of lawsuits over opioid harm. Bankruptcy Judge Sean Lane was set to give his reasoning Tuesday for approving the plan, which requires members of the Sackler family, who own the company, to contribute up to $7 billion over 15 years. Most of the money is to go to government entities to fight the opioid crisis that has been linked to 900,000 deaths in the US since 1999, per the AP. A portion is to be distributed next year to some people who had OxyContin prescriptions, as well as to their survivors.

The new agreement replaces one that the Supreme Court rejected in 2024, finding it would have improperly protected members of the family against future lawsuits. Under the current agreement, entities that don't opt into the payments can still sue members of the family. The Sacklers, who haven't had direct involvement in the company for seven years, will officially give up ownership and be barred from selling opioids anywhere globally. The company will also officially receive a new name—Knoa Pharma—and be operated with a public-interest mission.

The deal, which the judge said last week he'd accept, is among the largest in a series of opioid settlements brought by state and local governments against drugmakers, wholesalers, and pharmacies that totaled about $50 billion. Money will go to governments and about $850 million will go to individuals, including children born with opioid withdrawal. People with addiction and survivors of late victims must prove they were prescribed OxyContin to take part. Those who do may receive payments of around $8,000 or $16,000, depending on how long they took the drug and how many other people qualify. The money for individual victims will be distributed in 2026.

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The Sacklers also agree to give up ownership of Purdue—not a major change for them, as no family member has served on Purdue's board or received money from the firm since 2018. The plan calls for Purdue to be replaced with Knoa Pharma, which will be controlled by a board appointed by states. Sackler family members are also agreeing not to have their name put on institutions in exchange for contributions, and to make public a trove of internal documents that could shed additional light into how the company promoted and monitored opioids.