Purdue Pharma Bankruptcy Settlement Finalized, Launching Knoa Pharma with $5 Billion Family Contribution

Purdue Pharma's settlement to resolve thousands of lawsuits over the toll of opioids took effect on Friday, May 1, 2026. The company is being replaced by a new entity called Knoa Pharma. AP reported that members of the Sackler family have given up any interest in Purdue Pharma as part of the deal.

5 billion coming from members of the Sackler family. Purdue Pharma filed for bankruptcy in 2019, and Sackler family members stopped controlling the company before that filing. Knoa Pharma has a board appointed by states and a mission to fight the opioid epidemic.

U.S. have been connected to opioid overdose since 1999, according to federal data. The opioid epidemic's death toll was first driven by prescription opioids, then heroin, and most recently by fentanyl.

OxyContin became available in 1996. The Purdue settlement money will be provided over 15 years, with the biggest amounts coming early in that period. 8 billion, according to Opioid Settlement Tracker.

Companies that have settled opioid suits include drugmakers, wholesalers, pharmacy chains, and at least one consulting firm. U.S. Department of Justice probe into Purdue that resulted in a guilty plea by the company.

U.S. Supreme Court justices out of nine ruled in 2024 to reject an earlier version of Purdue's settlement. 7 billion in payouts from Purdue from 2008 to 2018, according to a 2019 audit.

Sackler family members have not received distributions from Purdue since 2018. A congressional committee report in 2021 estimated that Sackler family members had a total net worth of $11 billion at the time.