On Apr. 28, 2026, the U.S. District Court for the District of New Jersey sentenced Purdue Pharma in connection with its 2020 Plea Agreement with the U.S. Department of Justice. Purdue is operating as usual and without interruption until May 1, 2026, when it will permanently cease operations. On that day, substantially all of Purdue’s assets will be transferred to a newly formed company, Knoa Pharma. Medicines distributed though Purdue will then be distributed by Knoa Pharma.

On Nov. 14, 2025 – The United States Bankruptcy Court for the Southern District of New York indicated it will approve the Chapter 11 Plan of Reorganization for Purdue Pharma. The Plan, which achieved remarkable consensus with the support of more than 99% of voting creditors, will deliver billions in urgently needed funding for opioid crisis abatement and victim compensation, as well as rescue medicines that will save lives. 

Purdue Pharma has won support from the attorneys general of 55 U.S. states and territories for its $7.4 billion settlement to resolve thousands of opioid lawsuits against the drugmaker and its owners, members of the Sackler family. The $7.4 billion payment is intended to resolve claims that the drugmaker’s pain medication OxyContin caused a nationwide opioid addiction crisis. It includes about $6.5 billion from the Sacklers and about $900 million from Purdue Pharma.

Payouts would begin after the drugmaker wins sufficient creditor support for its Chapter 11 plan. Money would go to individuals, state and local governments, and Native American tribes, and the Sacklers would cede control of Purdue. According to several attorneys general, the agreements do not include Oklahoma, which in 2019 reached a $270 million settlement with Purdue Pharma and the Sacklers to resolve opioid-related claims.

More than 850,000 people have died from opioid-related overdoses since 1999, according to the U.S. Centers for Disease Control and Prevention, though deaths have recently declined