Purdue Pharma L.P. · opioids · criminal prosecution · bankruptcy
What happened to Purdue Pharma's opioid guilty plea and bankruptcy plan?
Purdue Pharma pleaded guilty on 24 November 2020 to three federal felonies over its marketing of opioids and was sentenced on 28 April 2026. The US Supreme Court rejected its earlier bankruptcy plan on 27 June 2024 because it released Sackler family members from claims without victims' consent. A revised plan with about $7.4 billion for creditors was confirmed on 18 November 2025 and took effect on 1 May 2026, when Purdue's operations moved to Knoa Pharma. As of 30 October 2026 the plan is in effect.
Last verified 30 October 2026. United States
The record at a glance
| What was alleged? | The US Department of Justice charged Purdue with conspiracy to defraud the United States and violate the Food, Drug, and Cosmetic Act and with two counts of conspiracy to violate the federal Anti-Kickback Statute in connection with its marketing and sale of opioid products.1 |
|---|---|
| Who made the claim? | US Department of Justice, 24 November 2020 |
| How did Purdue Pharma respond? | Purdue pleaded guilty to the three counts and, according to the Justice Department, admitted conspiring to mislead the DEA about its anti-diversion program and to boost its manufacturing quotas, and paying kickbacks. Its board chairman described the court's November 2025 decision to confirm the plan as the culmination of a six year bankruptcy and mediation process.1,2 (the subject's position) |
| Was there an official finding? | Purdue Pharma L.P. was convicted on its guilty plea to three federal felonies and was sentenced on 28 April 2026.1,6 The Supreme Court held on 27 June 2024 that the earlier plan's nonconsensual releases of Sackler family members were not authorised.3 A revised plan was confirmed on 18 November 2025 and took effect on 1 May 2026.5,7 |
| Was liability determined? | Yes, liability was determined. Purdue Pharma L.P. is convicted on its guilty plea and was sentenced in 2026. Sackler family members have not been criminally charged in these records and their civil settlements are separate from Purdue's conviction.1,6 |
| What changed later? | As of 30 October 2026 Purdue's plan has been in effect since 1 May 2026, its operations are run by Knoa Pharma, and its criminal sentence was imposed on 28 April 2026.4,5,6,7 |
| When was this checked? | 30 October 2026 |
What was alleged?
The US Department of Justice charged Purdue with conspiracy to defraud the United States and violate the Food, Drug, and Cosmetic Act and with two counts of conspiracy to violate the federal Anti-Kickback Statute in connection with its marketing and sale of opioid products.1
Made by US Department of Justice on 24 November 2020.
What did Purdue Pharma say?
Purdue pleaded guilty to the three counts and, according to the Justice Department, admitted conspiring to mislead the DEA about its anti-diversion program and to boost its manufacturing quotas, and paying kickbacks. Its board chairman described the court's November 2025 decision to confirm the plan as the culmination of a six year bankruptcy and mediation process.1,2
"Today is a landmark day, representing the culmination of a six-year bankruptcy and mediation process."
Steve Miller, Chairman of the Board, Purdue Pharma (company press release), 14 November 2025. This is the subject's own account, not a finding.
What do independent records show?
Guilty plea to three-count information
US District Court for the District of New Jersey, 24 November 2020
Purdue pleaded guilty to one count of dual object conspiracy to defraud the United States and violate the Food, Drug, and Cosmetic Act and two counts of conspiracy to violate the Anti-Kickback Statute. The agreement provided for a $3.544 billion criminal fine and $2 billion forfeiture, plus a $2.8 billion civil False Claims Act claim. Sackler family members separately agreed to pay $225 million to resolve civil False Claims Act liability, and the resolution did not cover any individual's criminal liability.1
Harrington v. Purdue Pharma L.P., No. 23-124
Supreme Court of the United States, 27 June 2024
By 5 to 4, in an opinion by Justice Gorsuch, the Court held the Bankruptcy Code does not authorise a release and injunction that effectively discharges claims against a nondebtor without the affected claimants' consent, rejecting the earlier plan's Sackler releases.3
Order confirming the Eighteenth Amended Joint Chapter 11 Plan, Case No. 19-23649 (SHL), ECF No. 8263
US Bankruptcy Court for the Southern District of New York (Judge Sean H. Lane), 18 November 2025
The plan provides about $7.4 billion in cash to creditors, with Sackler family contributions of up to $6.5 to $7 billion over time and up to $865 million for individual victims. Creditors could choose whether to release direct claims against Sackler family members, according to Purdue and counsel summaries.2,4,5
Sentencing of Purdue Pharma L.P.
US District Court for the District of New Jersey, 28 April 2026
Purdue was sentenced to a $3.544 billion criminal fine to be assessed through the bankruptcy and $2 billion forfeiture, with up to $1.775 billion credited if Purdue emerged as a public benefit company or similar entity.6
Announcement of Purdue shutdown and start of Knoa Pharma
New York State Office of the Attorney General, 1 May 2026
Knoa Pharma, a public benefit company owned by the nonprofit Knoa Foundation, took over Purdue's operations. Sackler family members have no role and are barred from selling opioids in the US. Sackler payments continue in 2027, 2028 and 2029.7
What was established?
- Purdue Pharma L.P. was convicted on its guilty plea to three federal felonies and was sentenced on 28 April 2026.1,6
- The Supreme Court held on 27 June 2024 that the earlier plan's nonconsensual releases of Sackler family members were not authorised.3
- A revised plan was confirmed on 18 November 2025 and took effect on 1 May 2026.5,7
Distinctions that matter here
- Purdue the company was convicted. Sackler family members settled civil claims and were not convicted.
- Under the confirmed plan, releases of claims against Sackler family members depend on each creditor's consent, as required by Harrington v. Purdue Pharma.
Was liability determined?
Yes, liability was determined. Purdue Pharma L.P. is convicted on its guilty plea and was sentenced in 2026. Sackler family members have not been criminally charged in these records and their civil settlements are separate from Purdue's conviction.1,6
What remains unresolved?
- Whether any appeal of the 18 November 2025 confirmation order is pending could not be verified from a reliable source.
- Payment of remaining Sackler installments scheduled for 2027 to 2029.
What is the current status?
As of 30 October 2026 Purdue's plan has been in effect since 1 May 2026, its operations are run by Knoa Pharma, and its criminal sentence was imposed on 28 April 2026.4,5,6,7
As of 30 October 2026. No next proceeding is scheduled in the records we found.
Timeline
- Purdue pleads guilty to three felonies.1
- Supreme Court rejects earlier plan's nonconsensual Sackler releases.3
- Judge Sean Lane says at a hearing that he will approve the plan.8
- Bankruptcy court confirms revised plan.4,5
- Purdue sentenced in federal court in Newark.6
- Plan takes effect and Knoa Pharma begins operating.5,7
Sources
- US Department of Justice, Office of Public Affairs, Opioid Manufacturer Purdue Pharma Pleads Guilty to Fraud and Kickback Conspiracies, 24 November 2020 · document record Government, parliamentary or audit document
- Mammoth Times business feed (Business Wire), Bankruptcy Court to Confirm Purdue Pharma's Plan of Reorganization (Purdue press release via Business Wire), 14 November 2025 · document record Filing or formal statement by the subject
- Supreme Court of the United States, Harrington v. Purdue Pharma L.P., No. 23-124 (opinion), 27 June 2024 · document record Court, legislation, official register or regulator record
- US District Court for the Northern District of Ohio filing (hosted by NAAG), Notice of Bankruptcy Court Order Confirming Bankruptcy Plan (MDL No. 2804), 21 November 2025 · document record Filing or formal statement by the subject
- Davis Polk & Wardwell (debtors' counsel), Purdue Pharma completes chapter 11 restructuring Secondary commentary
- US Department of Justice, Office of Public Affairs, Opioid Manufacturer Purdue Pharma Sentenced for Fraud and Kickback Conspiracies, 28 April 2026 · document record Government, parliamentary or audit document
- New York State Office of the Attorney General, Attorney General James Announces Shutdown of Opioid Manufacturer Purdue Pharma, 1 May 2026 · document record Government, parliamentary or audit document
- Claims Journal (Reuters), Judge to OK Purdue Pharma's Massive Opioid Bankruptcy Settlement (Reuters), 14 November 2025 Independent reporting
Revision history
- 30 October 2026: First published after source verification.
Related: Purdue Pharma L.P., opioids, criminal prosecution, bankruptcy, United States. To submit a document or request a correction, see right of reply.