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Purdue Pharma Pays $8 bn to End Opioid Criminal Case

Financial Times Companies •
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Purdue Pharma, the maker of OxyContin, will pay $8 bn to end a seven‑year US criminal case that accused it of defrauding the government. Judge Madeline Cox Arleo handed down the sentence after a day‑long hearing attended by chair Steve Miller.

The penalty, negotiated with prosecutors, unlocks billions of dollars for states, cities, insurers and thousands of opioid victims. A Purdue lawyer said disbursements could begin on May 1, providing a financial lifeline to communities battered by addiction.

Purdue’s guilty plea in 2020 acknowledged kickbacks to doctors and the failure to curb diversion of OxyContin. The company, now restructured as Knoa Pharma, will channel proceeds through an independent trust to fund treatment programs, shifting its focus from profit alone to public benefit.

With the Supreme Court’s 2024 ruling stripping Sackler family members from bankruptcy protection, this settlement closes a long‑running saga and signals a new era of accountability for a firm that once dominated the opioid market.