NEW YORK – A federal bankruptcy judge has approved a settlement deal to dissolve Purdue Pharma, the maker of the addictive painkiller Oxycontin.
It will be reorganized and will continue to manufacture opioids, while also making overdose reversal medications.
Purdue Pharma’s former owners, the billionaire Sackler Family, will pay out more than $4-billion to address the opioid epidemic. Opioids have killed half a million Americans to date.
The settlement resolves all civil litigation against the Sackler Family, Purdue Pharma and others, and awards them broad legal protection against future civil litigation.
The settlement does not protect the Sackler Family and other named parties against potential criminal actions. Several states are expected to appeal the ruling.
Purdue Pharma declared bankruptcy in 2019, putting on hold thousands of lawsuits filed against it.