Ruling clears way for Purdue Pharma to settle opioid claims, protect Sacklers from lawsuits

A federal court ruling cleared the way Tuesday for OxyContin maker Purdue Pharma's settlement of thousands of legal claims over the toll of opioids.

The 2nd U.S. Circuit Court of Appeals in New York reversed a 2021 ruling that found bankruptcy court judges did not have the authority to shield from civil lawsuits members of the Sackler family who own Purdue and who have not filed for bankruptcy protection themselves.

Those protections are at the heart of the proposed deal that would end claims against Purdue filed by thousands of state, local and Native American tribal governments and other entities.

Under the plan, members of the Sackler family would give up ownership of Stamford, Connecticut-based Purdue, which would become a new company known as Knoa, with its profits being used to fight the opioid crisis. They would also contribute $5.5 billion to $6 billion in cash over time. A chunk of that money — at least $750 million — is to go to individual victims of the opioid crisis and their survivors.