On Mar. 20, 2025, Bankrupt drugmaker Purdue Pharma filed a new bankruptcy plan, a major step towards finalizing a proposed opioid settlement of at least $7.4 billion after a setback in the U.S. Supreme Court last year.

The payments are aimed at resolving thousands of lawsuits alleging that the company’s pain medication OxyContin caused a widespread opioid addiction crisis in the United States. The headline figure had been previously flagged by Purdue and its owners, members of the wealthy Sackler family.

Assuming full creditor participation, the Plan will deliver to creditors more than $7.4 billion of cash, subject to certain reserves, to compensate victims and abate the opioid crisis. Purdue was the manufacturer of the addictive painkiller Oxycontin (oxycodone).

The formal bankruptcy plan filed in White Plains, New York, clarified the settlement with new details about how the money will be allocated to states, local governments and individuals harmed by the crisis.

The cash value of the plan assumes full creditor participation. Purdue said it expects widespread creditor support for the deal.

The company plans to begin soliciting votes and opt-in decisions from its creditors in May. After that process is concluded, the plan would be submitted to a U.S. bankruptcy judge for final approval.