NEW YORK — Lawyers representing Purdue Pharma, the maker of OxyContin, and various stakeholders across the U.S. reached a near-unanimous consensus in bankruptcy court: approve a settlement plan aimed at resolving thousands of lawsuits tied to the opioid crisis. If U.S. Bankruptcy Judge Sean Lane agrees, it could effectively close the chapter on a lengthy legal saga linked to 900,000 opioid-related deaths in the U.S. since 1999.



As the third day of hearings on this bankruptcy plan concluded, the atmosphere showcased a marked shift. While past settlement attempts faced significant opposition, this time around, only 218 out of more than 54,000 personal injury claimants voted against the proposal, indicating substantial backing for the relief measures contained within the plan.



A Call for Justice Meets the Reality of Bankruptcy


The opioid epidemic has wreaked havoc across the United States, leading to renewed scrutiny of pharmaceutical companies. Formerly contentious arguments reflect a struggle between personal justice for victims and the structured approaches typical in bankruptcy court. The U.S. Supreme Court previously rejected an earlier settlement due to concerns over the legal immunity granted to the Sackler family members.



The current proposal, however, lays bare a more comprehensive plan. While family members' net worth is estimated in billions, much of their wealth is locked in offshore trusts, presenting a challenge for any future claims. In this amended arrangement, entities not participating in the settlement retain the right to pursue litigation against the Sacklers.



Despite the overwhelming support, a minority of voices continued to express dissent during the court hearings, calling for direct accountability and victim-centric restitution. One vocal critic stated, The Sacklers and Purdue Pharma should pay for what they have done,” echoing sentiments of many victims' families.



A Multi-Billion Dollar Settlement with Direct Victims Support


The proposed settlement represents one of the largest sacrifices by a pharmaceutical entity in opioid litigation history, with the Sackler family expected to contribute as much as $7 billion while relinquishing control of the company. The plan not only promises financial restitution but introduces stringent reforms to Purdue Pharma, including a name change and leadership overhaul aimed at ensuring profits are funnelled into addressing the opioid crisis.



Significantly, the arrangement allocates roughly $850 million for individuals harmed by Purdue’s opioids, a notable feature unique among similar settlements. Victims could receive between $8,000 and $16,000 depending on their circumstances, while the bulk of the settlement funds would go towards state and local government efforts to combat the epidemic.



As over 139,000 individuals have pending claims, collecting proofs of prescription will be crucial for gaining access to funds. With states showing a decline in overdose deaths, advocates hope the financial and structural changes prompted by the settlement will initiate a turning point in the ongoing battle against this public health crisis.