Purdue Pharma Ordered to Pay Over $5 Billion for Opioid Crisis Role
Purdue Pharma, the manufacturer of OxyContin, has been sentenced in a New Jersey federal court to pay more than $5 billion in criminal penalties for its part in the opioid epidemic in the United States.
The Department of Justice (DOJ) stated that between 2007 and 2017, Purdue illegally promoted its opioid medications to numerous prescribers who were suspected of writing prescriptions without proper medical justification. Moreover, the company misled the Drug Enforcement Administration regarding the effectiveness of its anti-diversion program and used questionable data to bolster its requests for increased production quotas.
Additionally, Purdue was found to have provided kickbacks to prescribers through its physician speaker program and electronic medical records system, according to the DOJ.
Acting Attorney General Todd Blanche remarked, “Purdue Pharma put profits ahead of patient health and safety. They willfully breached the law and neglected the diversion of highly addictive drugs. Their actions have significantly contributed to the opioid crisis, which has taken countless lives and devastated families and entire communities.”
“Today’s decision is a clear demonstration of the Department’s commitment to address past wrongs by eliminating and penalizing corporate misconduct linked to this national crisis,” Blanche added.
On April 28, 2026, the U.S. District Court for New Jersey finalized a judgment against Purdue Pharma in connection with a plea agreement reached with the DOJ. The company is continuing its operations until May 1, 2026, when it will cease operations entirely. At that time, most of Purdue’s assets will be transferred to a new entity, Knoa Pharma LLC, which will handle the distribution of its medications thereafter.
FBI Director Kash Patel expressed concern over the opioid crisis, saying, “This is an epidemic that ruins lives and destroys families.” He further stressed that Purdue Pharma has callously disregarded patient health and safety, jeopardizing countless lives for its own profit. He assured that efforts would persist to hold companies accountable for their harmful impact.
In January 2025, Connecticut’s Attorney General announced a $7.4 billion settlement involving the Sackler family and victims of the opioid crisis, along with 15 bipartisan states. The recent ruling allows Purdue to continue its bankruptcy process and utilize its assets to fund this settlement.
Prior to approving the plea agreement, Judge Madeline Cox Arleo heard nearly seven hours of testimonials from individuals discussing Purdue’s role in the opioid crisis. Over 200 victims submitted letters detailing their experiences with addiction, while more than 40 individuals spoke in court.
As of 2022, nearly one in three U.S. adults reported experiencing opioid addiction themselves or through family members, according to KFF. Estimates from the Harvard T.H. Chan School of Public Health predict that without immediate intervention, 1.2 million people in the U.S. and Canada could die from opioid overdoses over the next decade.
