Texas Attorney General Ken Paxton has helped secure a bankruptcy reorganization plan for Purdue Pharma that could deliver $294 million to the state over 15 years.
The multistate effort establishes a new legal framework to hold the pharmaceutical giant and the Sackler family accountable for their role in the opioid epidemic. The plan represents a critical step toward justice for communities devastated by opioid addiction. It creates oversight mechanisms and funding streams for treatment and prevention programs across Texas.
Expected to take effect in spring 2026, the reorganization transforms Purdue into Knoa Pharma, a successor company that will continue manufacturing OxyContin. The new entity will operate under strict injunctions designed to prevent abuse and misuse of the powerful painkiller.
The plan also establishes a Master Creditor Trust to handle insurance and third-party claims. This structure aims to strengthen oversight, increase transparency, and support post-emergence litigation efforts against responsible parties.
“This plan reflects years of working to secure justice for the families and communities devastated by the opioid crisis,” Attorney General Paxton said. “The framework helps ensure that Purdue and the Sackler family will face consequences for the damage they caused, secures critical resources to help Texans recover, and also supports our state’s efforts to combat this deadly epidemic.”
The reorganization follows a $7.4 billion global settlement that Paxton helped lead against Purdue. That agreement marked one of the most significant nationwide resolutions against a pharmaceutical company for its role in the opioid crisis.
Texas will use its share of the funds for opioid abatement initiatives statewide.
The money will support treatment programs, prevention efforts, and other measures to address the ongoing public health emergency.