A federal bankruptcy judge gave conditional approval Wednesday to a bankruptcy plan for OxyCotin maker Purdue Pharma.
The plan would settle the numerous lawsuits against Purdue and the Sackler family over the company’s role in the opioid crisis that has devastated the lives of millions of Americans over the past two decades.
The Sackler family will give up ownership of the company and pay $4.45 billion. In turn, they will be shielded from any future lawsuits over the drugs.
The company will get a new board appointed by government officials. Its profits will go to fund efforts to prevent and treat addiction.
A compensation fund will be set up to pay victims of the drugs, who could receive up to $48,000.
Purdue last year pleaded guilty to criminal charges relating to its promotion of Oxycontin, admitting that it knew the painkiller was addictive.
Dr. Richard Sackler, a former president and co-chairman of the board of directors of Purdue Pharma, testified in August that he does not believe he, his family, or the company has any responsibility for the opioid crisis.