Purdue Pharma Files New Chapter 11 Bankruptcy Plan, Promises $7.4 Billion Compensation

Purdue Pharma has filed a new Chapter 11 bankruptcy plan, pledging over $7.4 billion to compensate victims of the opioid crisis as part of a proposed settlement following a setback from the U.S. Supreme Court. This plan outlines how funds will be allocated to states, local governments, and individuals affected by the opioid epidemic, with the Sackler family relinquishing ownership and control over the company. Purdue's Chair, Steve Miller, expressed optimism about creditor support for the plan, which aims to deliver immediate financial relief to communities harmed by opioid addiction. The new public benefit company will be established after Purdue is dissolved and its assets transferred. The Sacklers are expected to contribute approximately $6.5 billion, with $1.5 billion payable upon the plan's effectiveness. A vote from creditors is anticipated in May before final approval is sought from a bankruptcy judge.