Opioid Litigation · Plan Effective — Payments Under Way

Purdue Pharma & Sackler Opioid Settlement: $7.4 Billion, and When Victims Get Paid

Published May 2, 2023
Updated September 30, 2026

Purdue Pharma, the maker of OxyContin, and members of the Sackler family agreed to a roughly $7.4 billion opioid settlement that finally took legal effect on May 1, 2026 — after the Supreme Court threw out an earlier version of the deal. The claim window has closed. The victim trust set its award amounts in September 2026, $16,294 for Tier 1, $8,147 for Tier 2 and $25,653 for NAS claims, and has begun paying.

Prescription opioid pills, representing the Purdue Pharma OxyContin litigation
Most of the money goes to governments for addiction treatment and prevention. A far smaller pool is reserved for individual victims.

Where This Stands Right Now

The settlement is final, the money is moving, and as of late September 2026 it has started reaching individual victims.

The bankruptcy court confirmed the rebuilt plan in November 2025, and it went effective on May 1, 2026. On that date the Sackler family paid more than $1.5 billion and Purdue's estate contributed roughly $900 million, with further Sackler payments scheduled over the following years. Purdue itself ceased to exist in its old form; its business now operates as Knoa Pharma, owned for the benefit of creditors.

For individual victims, the position is narrower. The deadline to file a personal injury claim was July 28, 2025, and it has passed — no new claimants are being accepted. On September 30, 2026 the Purdue Personal Injury Trust published its award amounts for claims that have been reviewed and allowed: $16,294 for a Tier 1 claim, $8,147 for Tier 2 and $25,653 for a neonatal abstinence syndrome claim, before the claimant's own attorney's fees and any medical liens. Payments have begun on a rolling basis, and the trust expects most currently allowed claimants to receive at least part of their award by the end of 2026. The deductions, the lien holdback and the appeal process are covered in our report on the trust's award amounts and payment status.

The civil settlement with the Sackler family carries no admission of liability, and no court has found any Sackler family member liable for the harms alleged. Purdue itself pleaded guilty to federal criminal charges in 2020 and was sentenced in April 2026.

Status Plan Effective — Payments Under Way effective May 1, 2026 · trust awards set September 30, 2026 · rolling payments, most expected by end of 2026
Can You Still File? No — Deadline Passed personal injury claims closed July 28, 2025 · no new claimants are being added
Total Settlement ~$7.4 Billion plus up to $500 million more tied to sale proceeds from the Sacklers' international pharmaceutical businesses
Reserved for Individual Victims Up to ~$865 Million a fraction of the total · the rest goes to governments for opioid abatement programs

Why the First $6 Billion Deal Collapsed

If you last read about this case in 2023, the deal you read about no longer exists. That is the single most important thing to understand about this page.

Purdue filed for Chapter 11 bankruptcy in 2019 as opioid lawsuits mounted. The plan that emerged did something unusual: it shielded Sackler family members — who had not personally filed for bankruptcy — from opioid claims brought by people who never agreed to give up those claims. In exchange, the family would contribute billions.

On June 27, 2024, the Supreme Court rejected that structure in Harrington v. Purdue Pharma L.P. By a 5-4 vote, the Court held that the Bankruptcy Code does not authorize a plan to extinguish claims against a non-debtor without the consent of the claimants affected. The decision resolved a long-running split among the federal appeals courts, and it left the earlier settlement unusable.

It is worth being precise about what that ruling did and did not do. It was a decision about the limits of bankruptcy law, not a verdict on anyone's conduct. The Court also took care to note that it was not questioning consensual releases — which is exactly the door the rebuilt plan walked through.

How the New Plan Fixed the Problem

The parties went back and negotiated a larger deal built on consent rather than compulsion. A new plan was filed in March 2025, the bankruptcy court confirmed it in November 2025, and it took effect May 1, 2026.

The mechanism that makes it work is an opt-in release. Creditors who affirmatively chose, by March 1, 2026, to release claims against the Sackler released parties became eligible for additional distributions. Creditors who did not opt in kept their right to pursue the Sacklers directly — they simply forgo that extra money. Consent is given rather than imposed, which is what the Supreme Court's decision required. More than 99% of voting creditors supported the plan.

Key Dates

How the case reached its current position
DateWhat happened
September 2019Purdue Pharma files for Chapter 11 bankruptcy as opioid litigation mounts.
March 2022A roughly $6 billion agreement is reached with states, built on releases protecting Sackler family members.
June 27, 2024The Supreme Court rejects that plan 5-4 in Harrington v. Purdue Pharma L.P., holding the Bankruptcy Code does not permit nonconsensual third-party releases.
March 2025A rebuilt plan is filed, raising the Sackler contribution and replacing forced releases with opt-in consent.
July 28, 2025Personal injury claim deadline. Filing closes for individual victims.
November 2025The bankruptcy court confirms the ~$7.4 billion plan, with support from more than 99% of voting creditors.
March 1, 2026Deadline for creditors to opt in to releasing the Sackler released parties in exchange for extra distributions.
May 1, 2026Plan goes effective. Sacklers pay more than $1.5 billion; Purdue's estate pays about $900 million. Purdue's business continues as Knoa Pharma.
September 30, 2026The personal injury trust publishes its award amounts — $16,294 Tier 1, $8,147 Tier 2, $25,653 NAS — and confirms rolling payments have begun.
End of 2026 (expected)Most currently allowed claimants are expected to have received at least part of their award. An expectation from the trust, not a guaranteed date.

Where the Money Actually Goes

The headline number is misleading if you read it as a victims' fund. Most of it is not.
Structure of the settlement
ComponentAmount
Total plan value in cash to creditors~$7.4 billion
Additional amount tied to sale of the Sacklers' international pharmaceutical businessesup to $500 million
Paid by the Sackler family on the effective date$1.5 billion+
Paid by Purdue's estate on the effective date~$900 million
Reserved for individual personal injury victimsup to ~$865 million
The large remainder is directed to states, local governments and tribes for opioid abatement — funding treatment programs, overdose-reversal medication, prevention and related public health work. A state receiving abatement money does not mean an individual resident receives a check. These are two different pipes, and only the smaller one leads to people.

Who Qualifies, and What They May Receive

Eligibility was fixed when the filing window closed in July 2025. Broadly, the individual pool covers two groups: people who were prescribed and took a qualifying Purdue opioid and suffered harm, and children born with neonatal abstinence syndrome after opioid exposure before birth.
Initial award amounts set by the trust on September 30, 2026
Claim groupInitial award
Non-NAS Tier 1 — evidence of six months or more of prescribed use of a qualifying Purdue opioid before September 15, 2019 $16,294
Non-NAS Tier 2 — evidence of less than six months of prescribed use of a qualifying Purdue opioid before September 15, 2019 $8,147
NAS — a licensed provider's diagnosis of a condition in a child resulting from opioid exposure before birth $25,653
Two cautions on those figures. They are initial distributions: the trust says a second payment may follow once all contingencies are resolved, depending on how many claims are ultimately allowed and what remains in the trust. And they are stated before the claimant's own attorney's fees, case costs and medical liens such as Medicaid or private-insurer reimbursement, which come out before the money arrives. The trust's operating expenses and certain plan-level professional fees have already been deducted. Where a lien review is still open, part of the award is held back and released once the review is done.

Can You Still File a Claim?

No. The personal injury filing deadline was July 28, 2025 at 11:59 p.m. Eastern, and claims received more than 15 days after that were disqualified. There is no open window, no late-claim process being advertised, and no way to be added now.

That matters for a practical reason beyond disappointment. A closed, high-profile settlement with money visibly moving is exactly the setup scammers use. Important: nobody legitimate will contact you offering to file a Purdue claim today, and no real process asks for an up-front fee, a gift card, or banking passwords to release a settlement payment. If you already filed, the trust communicates with claimants directly and through their counsel.

If you filed and your paperwork was incomplete, you may have received a deficiency notice during the review period, typically with a window to supply missing records such as prescription documentation or a diagnosis. Anyone in that position should be working through their own attorney or the official trust channels rather than a third party.

What Happens Next

The remaining milestones are administrative rather than legal. The trust is sending status letters on a rolling basis as deficiency reviews finish, and each letter opens a 20-day appeal window decided by an Appeals Special Master whose ruling is final. Allowed claims are being paid as they clear lien resolution, with most currently allowed claimants expected to have received something by the end of 2026. Claimants who did not grant the third-party release cannot be paid until 18 months after the effective date, which puts the earliest date in November 2027. Sackler payments continue on the schedule set by the plan over the following years, which is why the trust describes its current figures as initial distributions and has left open a second payment.

We update this page as the trust publishes distribution news. If you are tracking a filed claim, the official trust and your own counsel are the authoritative sources for its status.

Questions

Can I still file a Purdue Pharma claim?

No. The deadline to submit a personal injury claim to the Purdue Personal Injury Trust was July 28, 2025 at 11:59 p.m. Eastern, and claims arriving more than 15 days after that were disqualified. There is no open filing window, and no new claimants are being added. Anyone contacting you offering to file a Purdue claim now is not describing a real process.

Why did the original $6 billion settlement fall apart?

On June 27, 2024, the Supreme Court held 5-4 in Harrington v. Purdue Pharma L.P. that the Bankruptcy Code does not authorize a plan to release claims against people who did not themselves file for bankruptcy, without the affected claimants' consent. Because the earlier plan shielded Sackler family members from opioid claims on exactly that basis, it could not stand. The ruling was about what bankruptcy law permits; it was not a finding that any Sackler was liable.

How much will individual victims receive?

The Purdue Personal Injury Trust published its initial award amounts on September 30, 2026: $16,294 for a Non-NAS Tier 1 claim, $8,147 for a Non-NAS Tier 2 claim and $25,653 for a neonatal abstinence syndrome claim. Those figures already reflect the trust's own operating costs, but they are before the claimant's attorney's fees and costs and before any medical liens, so the amount that arrives is usually lower. The trust has said a second payment is possible once its remaining contingencies are resolved.

When do payments actually arrive?

The plan went effective May 1, 2026 and institutional payments began that day. The trust said in its September 30, 2026 update that it has begun paying Qualified and Allowed claimants on a rolling basis and expects most of them to receive at least part of their award by the end of 2026. Claimants with a lawyer are paid through the law firm; claimants without one are emailed to confirm a mailing address first. Claimants who did not grant the third-party release cannot be paid until 18 months after the effective date.

What is the difference between the money going to states and the money going to victims?

Most of the $7.4 billion is directed to governments and public entities to fund opioid abatement — treatment, naloxone distribution, prevention and related programs. That is separate from the roughly $865 million pool reserved for individual personal injury claimants. A state receiving abatement money does not mean a resident receives a check.

Did the Sacklers admit wrongdoing?

No. The settlement resolves claims without any admission of liability, and family members have denied wrongdoing throughout. Under the confirmed plan the releases are consensual: creditors who affirmatively opted in by March 1, 2026 released their claims against the Sackler released parties in exchange for additional distributions, while those who did not opt in kept the right to sue.


Sources

• U.S. Supreme Court, Harrington v. Purdue Pharma L.P. (June 27, 2024)
• Purdue Pharma — plan of reorganization and restructuring announcements
• Purdue Personal Injury Trust — claim deadlines and claimant FAQs
• Kroll Restructuring Administration — official case docket and filings
• Massachusetts Attorney General — 55 attorneys general sign on to the $7.4 billion settlement
• American Bar Association, Business Law Today — analysis of the Supreme Court decision on third-party releases.


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