Judge Approves Historic $7 Billion Purdue Pharma Settlement – Sackler Family Must Pay, OxyContin Victims Finally Get Direct Cash
For the first time ever in a major opioid settlement, thousands of individual victims and families harmed by OxyContin will receive direct payments — not just state and local governments.
Key Highlights of the Approved $7 Billion Deal
- Sackler family personally contributes up to $7 billion over 15 years
- $850 million set aside exclusively for individual victims and survivors
- Eligible victims can receive $8,000 to $16,000 each starting in 2026
- Sacklers permanently lose ownership of Purdue Pharma
- New public-benefit company Knoa Pharma replaces Purdue
- Sacklers banned from naming rights on museums, universities, etc.
- Millions of internal Purdue documents to be made public
Who Qualifies for Individual Victim Payments?
People who were prescribed OxyContin and developed addiction, or families who lost loved ones to overdose, can apply if they have medical proof.
Children born with neonatal abstinence syndrome (NAS) due to maternal OxyContin use are also eligible.
Payments expected to begin in mid-2026.
Why This Settlement Is Different
Unlike previous multi-billion-dollar opioid deals (Johnson & Johnson, distributors, etc.), this is the first major settlement to send money directly into victims’ pockets instead of only to government programs.
Timeline of the Purdue Pharma Legal Saga
| Year | Milestone |
|---|---|
| 2019 | Purdue files for bankruptcy amid thousands of lawsuits |
| 2021 | First settlement approved (later overturned) |
| 2024 | Supreme Court rejects Sackler liability shield |
| Nov 2025 | Judge Sean Lane finally approves revised $7B plan |
| 2026 | Individual victim payments begin |
What Happens to Purdue Pharma Now?
The company will be dissolved and reborn as Knoa Pharma — a new entity focused on public health, manufacturing addiction-treatment drugs, with a board appointed by creditors (mostly states).
