New York Attorney General Letitia James has secured court approval of Purdue Pharma’s bankruptcy plan, marking a significant milestone in the $7.4 billion settlement with Purdue and its owners, the Sackler family, for their involvement in the opioid crisis. U.S. Bankruptcy Judge Sean Lane confirmed the plan in a bench ruling.
“For decades, the Sacklers ran Purdue with one goal in mind: maximizing profits for their family, no matter the cost,” said Attorney General James. “Purdue was at the very center of the opioid crisis, fueling addictions and overdoses with deceptive marketing and sales tactics. While no amount of money will ever fully reverse the damage they caused, securing this bankruptcy plan brings us one step closer to delivering critical funding to communities impacted by the opioid crisis.”
The bankruptcy plan removes any further involvement by the Sackler family in Purdue. The company will be owned by an independent nonprofit foundation and managed by a new board. Court orders bar it from marketing opioids or lobbying on related issues, and a court-appointed monitor will oversee compliance. Excess revenue after expenses will go to state and local governments as well as the foundation for opioid abatement efforts.
The settlement announced by Attorney General James in January 2025 includes $1.5 billion from the Sacklers and about $900 million from Purdue in an initial payment expected in early 2026, pending final approval. Additional payments are scheduled over several years, bringing New York up to $250 million total from this agreement.
In June, attorneys general representing all eligible states and U.S. territories agreed to participate in the settlement along with approximately 9,300 local governments nationwide.
With this new funding added to previous agreements with pharmaceutical manufacturers and distributors such as Johnson & Johnson, Teva Pharmaceuticals, McKesson, Cardinal Health, CVS, Walgreens, Walmart, McKinsey & Company, and Publicis Health—New York has now secured more than $3 billion for addressing opioid-related harms.
Attorney General James was joined in this agreement by attorneys general from all 50 states plus several U.S. territories including Puerto Rico and Guam.
The case for New York involved multiple staff members across legal divisions and research departments within the Office of the Attorney General.
