Stamford, Conn.– Purdue Pharma L.P. announced today that its proposed disclosure statement has been approved by the U.S. Bankruptcy Court for the Southern District of New York, marking a key step forward in the company’s Chapter 11 reorganization. The court’s approval allows Purdue to begin soliciting votes from more than 600,000 eligible claimants on its latest Plan of Reorganization, with a voting deadline set for September 30, 2025. A confirmation hearing is scheduled for November.
The plan, developed following the U.S. Supreme Court’s 2024 ruling in Harrington, is designed to resolve claims related to Purdue’s role in the opioid crisis and deliver more than $7.4 billion in distributions to creditors. According to the company, the plan was shaped through months of mediation and collaboration with creditors, victims, and public stakeholders.
Board Chairman Steve Miller described the court’s approval as a major milestone in the effort to finalize a comprehensive settlement. “We’ve worked closely with creditors to deliver a plan that offers meaningful compensation to victims and supports the communities affected by the opioid epidemic,” Miller said. “Our goal is to confirm and implement the plan as quickly as possible.”
Under the proposed terms, the Sackler family, who previously controlled Purdue, will contribute approximately $6.5 billion over 15 years, including $1.5 billion on the day the plan becomes effective. The Sacklers relinquished control of the company in 2018 and will have no involvement in its future operations. Purdue itself will contribute 100% of its remaining assets to the new entity, with $900 million in cash expected to be available for distribution immediately upon emergence from bankruptcy.
The plan also includes more than $850 million in compensation earmarked for individual victims, making it the first opioid settlement to allocate significant funds directly to those personally impacted. Additionally, a new public benefit company will be created to provide millions of doses of opioid use disorder treatment and overdose reversal medications at no profit.
A key provision of the plan is a transparency initiative that will make millions of documents related to Purdue’s past sales and marketing practices—many of them privileged—available in a public repository. Purdue Pharma L.P. will be liquidated once the new entity is operational.
The plan does not include third-party releases and is fully aligned with the Supreme Court’s decision in Harrington, which limited the scope of such legal protections in bankruptcy settlements involving non-debtor parties.
The court-approved disclosure statement contains detailed information about the plan and will be distributed to eligible voters alongside ballots. The plan remains subject to confirmation by the Bankruptcy Court.
