Purdue Pharma has been dissolved following the conclusion of its bankruptcy case, putting into effect a $7.4 billion opioid settlement.
Stamford-based Purdue Pharma has been dissolved following the conclusion of its bankruptcy case, putting into effect a $7.4 billion national opioid settlement that will direct funding to states, including Connecticut, for addiction treatment and prevention, according to William Tong’s office.
Connecticut is expected to receive about $64 million from the agreement, with initial payments anticipated in fall 2026, the attorney general’s office said.
The settlement resolves years of litigation over the role Purdue and its owners, the Sackler family, played in the opioid crisis. It also bars the Sacklers from participating in the U.S. opioid business going forward and requires them to make payments totaling billions of dollars over several years, according to the state.
Much of the funding is expected to be distributed within the first three years and used to support addiction treatment, recovery and prevention efforts, the attorney general’s office said.
The bankruptcy resolution lifts legal stays that had paused related state court cases, allowing attorneys general to proceed with filings needed to finalize claims tied to the settlement.
As part of the restructuring, Purdue’s operations have been transferred to a newly formed company, Knoa Pharma LLC, which began operating May 1.
Knoa Pharma, based in Stamford, is owned by a nonprofit foundation and governed by independent leadership with no prior ties to Purdue, according to a company announcement.
The company will continue manufacturing certain medications, including opioid products, but is prohibited from promoting opioids and will operate under oversight aimed at reducing misuse and diversion. Revenue generated by the business will support opioid abatement efforts, including access to overdose-reversal drugs and treatment for opioid use disorder, according to the company.
The settlement also requires the release of more than 30 million documents related to Purdue’s opioid business, the attorney general’s office said.
Connecticut first sued Purdue and members of the Sackler family in 2019, alleging deceptive marketing practices that contributed to rising addiction rates, according to the state.
Earlier bankruptcy plans were challenged by several states, including Connecticut, over provisions that would have shielded the Sacklers from future liability. Those challenges led to renewed negotiations and a revised agreement with increased financial penalties.
State officials said they will monitor the new company’s operations and ensure compliance with the terms of the settlement as funds begin to be distributed.
