A $7.4 billion bankruptcy settlement tied to Purdue Pharma will exclude tens of thousands of opioid claimants, with fewer than half of nearly 140,000 individuals expected to receive compensation, ProPublica and The Philadelphia Inquirer reported April 23.
Purdue Pharma pleaded guilty in 2007 to misleading the public about the dangers of its opioids. Texas Attorney General Ken Paxton in January 2025 secured the settlement with the drugmaker and the Sackler family, which owns the company, for their roles in the opioid epidemic.
The plan sets aside $870 million for individual victims but tightens eligibility requirements, reduces payments and eliminates compensation for some claimants, including teenagers who bought Purdue drugs on the street, according to court records. Compensation for fatal overdoses dropped to as low as $8,000, down from $48,000 under a previous proposal.
The revised agreement also removes a provision allowing sworn affidavits in place of medical documentation, limiting access for claimants unable to obtain older prescription records, according to the report. About 63,000 individuals submitted supporting evidence, while roughly 80,000 others were excluded after missing deadlines or failing to meet new criteria. Under certain circumstances, individuals can still sue the Sackler family.
More than 300,000 people have died from prescription opioid overdoses in the U.S., and the settlement includes an additional $100 million contribution from the Sackler family to the victims’ fund, the report said.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.
