End of an Era: Purdue Pharma to Cease Operations
A United States bankruptcy judge has officially approved the dissolution of Purdue Pharma, the pharmaceutical company widely blamed for fueling the deadly opioid epidemic through its aggressive marketing of OxyContin. The ruling marks the conclusion of a lengthy legal battle that involved thousands of lawsuits against the drug manufacturer.
Federal judge Sean Lane confirmed in a New York court that he would sign off on the company's Chapter 11 bankruptcy plan, with a formal ruling scheduled for a hearing on Tuesday, November 18, 2025. This decision effectively ends Purdue Pharma's existence after decades of operation under the Sackler family ownership.
Massive Settlement Reached for Victims
The settlement includes substantial financial commitments from both the company and its former owners. The Sackler family will pay between $6.5 billion and $7.0 billion while Purdue Pharma will contribute $900 million toward resolving the claims. Additionally, a separate victim compensation fund of $865 million will be established to provide direct support to those affected by the opioid crisis.
Earlier this year, several US states had reached a comprehensive $7.4 billion settlement with both the Sackler family and Purdue Pharma. These funds are designated to be routed to affected communities and individuals struggling with addiction consequences.
Steve Miller, Purdue Pharma's board chairman, stated that "Today cements the end of a long chapter, and brings us very near to the end of the book for Purdue. Soon, Purdue will cease to exist." He emphasized that the company would now work to satisfy all remaining requirements to emerge from bankruptcy, enabling settlement resources to reach American communities as quickly as possible.
New Company to Focus on Treatment, Not Profits
The remnants of Purdue Pharma will transform into Knoa Pharma, a company that will be owned by a foundation rather than private shareholders. This new entity will have a completely different mission: providing opioid use disorder treatments and overdose reversal medicines. Importantly, the company will operate "with no obligation to maximize profits," marking a significant departure from Purdue's previous business model.
The opioid crisis, which began escalating in the early 2000s, saw countless individuals developing addiction through prescribed pain medications like OxyContin before often progressing to more dangerous illicit substances such as heroin and fentanyl. Purdue Pharma and other opioid manufacturers faced allegations of employing aggressive marketing tactics that encouraged widespread prescription of their products while concealing the drugs' highly addictive nature.
The Sackler family has consistently denied any wrongdoing related to the opioid crisis. According to company statements, the family "have had no involvement in Purdue since the end of 2018," and the January settlement officially ended their control over the pharmaceutical company they owned for decades.
