According to Reuters, more than 99% of Purdue Pharma’s creditors have voted in favor of a $7.4 billion bankruptcy settlement, marking a key milestone in the company’s years-long effort to resolve tens of thousands of legal claims over its role in the U.S. opioid crisis.
The vote moves the bankrupt drugmaker — best known for producing OxyContin — closer to finalizing its restructuring, which aims to distribute billions to victims and communities affected by the epidemic. A federal court hearing for final approval of the plan is scheduled for November.
Creditors back revised deal after Supreme Court ruling
The approval comes months after the U.S. Supreme Court forced Purdue to revise its original plan, which had included broad legal immunity for the Sackler family, the company’s billionaire owners. Under the new proposal, the Sacklers will contribute at least $6.5 billion but will not receive full protection from future lawsuits.
Creditors who decline compensation from the bankruptcy fund will retain the right to pursue separate claims against the family. In a statement cited by Reuters, Purdue’s board chairman Steve Miller said, “The high level of support for this plan is gratifying after years of intense work with our creditors to craft a settlement that maximizes value for victims and communities.”
Victims to receive direct compensation
Purdue emphasized that the deal includes up to $850 million in direct payments to individuals harmed by opioids — a feature that sets it apart from other large-scale opioid settlements, most of which channel funds primarily to governments. Court filings show that more than 54,000 individuals voted to accept the plan, with only 218 opposing it.
Decades of litigation and accountability
Purdue filed for bankruptcy in 2019 after being sued by thousands of plaintiffs, including states, cities, and individuals, who accused the company and the Sackler family of fueling the opioid epidemic through aggressive and misleading marketing.
The company pleaded guilty to federal charges of misbranding and fraud related to OxyContin in both 2007 and 2020. Despite acknowledging regret for the crisis, the Sacklers have denied personal wrongdoing, arguing that they were not directly responsible for sales practices.
According to Reuters, the Purdue settlement joins a broader wave of opioid-related resolutions that have collectively generated more than $50 billion from drugmakers, distributors, and pharmacy chains — though much of that funding is earmarked for state and local governments rather than individual victims.
