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The basics:

• New Jersey to receive $125.4M from nationwide opioid settlement
• Purdue Pharma dissolved; assets shift to new entity Knoa Pharma
• Sackler family relinquishes control, pays billions over time
• Funds to support addiction treatment, prevention, recovery

New Jersey is set to receive $125.4 million as part of a nationwide settlement with OxyContin maker Purdue Pharma LP over its role in the nation’s deadly opioid epidemic, according to officials.

The resolution went into effect May 1. It resolves years of litigation that the Stamford, Conn.-based company’s aggressive production and marketing of opioids fueled the largest drug crisis in U.S. history.

Under the terms of the agreement, Purdue also dissolved. Its assets transferred to a new public benefit/nonprofit-type entity called Knoa Pharma. Additionally, the deal ends the Sackler family’s control of the company and its ability to sell opioids.

All 50 U.S. states, Washington, D.C., and four U.S territories will receive a total of $7.4 billion over the next 15 years to support addiction treatment, prevention and recovery.

That’s $1 billion more than a previous proposal made in 2019 when Purdue filed for Chapter 11 bankruptcy amid widespread litigation tied the opioid epidemic.

Attorneys general negotiated a new settlement that obtained more money from the Sackler family, after the Supreme Court invalidated portions of a prior settlement in 2024, according to the New Jersey Attorney General‘s Office.

The new plan calls for immediate payments of $1.5 billion from the Sacklers and $900 million from Purdue. After that, the family will pay an additional $500 million in May 2027, $500 million in May 2028 and $400 million in May 2029.

$1.3 billion and counting

New Jersey Attorney General Jennifer Davenport noted that most settlement funds will be distributed in the first three years.

“Purdue and the Sackler family hyper-charged America’s opioid epidemic through their recklessness and greed. Money cannot erase the pain for the people who have lost loved ones to this crisis, but those responsible are being held accountable for their actions. These settlement funds must be used for education, prevention, and recovery to continue the progress made in avoiding and treating opioid addiction.”

Following the latest resolution, New Jersey has secured more than $1.3 billion in opioid-related settlements, officials said.

New Jersey joined a multistate investigation into Purdue and Sackler family members in 2016. The coalition went on to file lawsuits against Purdue in 2017 and the Sacklers in 2019.

The U.S. Centers for Disease Control and Prevention says that more than 1 million people across the country have died from drug overdoses since 1999. The CDC says opioids, such as fentanyl, drive the vast majority of deaths.

New Jersey has recorded roughly 30,000 drug overdose deaths during that same time frame, according to CDC state data. That makes the state among the hardest hit on a per-capita basis during parts of the crisis.

However, as prevention efforts have expanded, New Jersey has seen a decline in overdose deaths in recent years. The state recorded 1,585 deaths in 2024 and 2,358 deaths in 2023, according to the state Department of Health.

Overall, the state had 2,025 drug overdose deaths in 2024, down from 2,827 in 2023, data shows.

Achieving accountability

The settlement went into effect three days after Purdue Pharma’s sentencing in Newark federal court April 28. The ruling assigned more than $5 million in criminal penalties, following the company previously pleading guilty to fraud and kickback conspiracies tied to its marketing of Oxycontin.

Because the sentencing formally closed out the Justice Department’s criminal case against the company, it allowed the broader nationwide settlement to move forward. The move also concluded Purdue’s Chapter 11 proceedings.

Commenting on the outcome, U.S. Attorney for the District of New Jersey Robert Frazer said, “Today’s multibillion-dollar sentence holds Perdue accountable for its criminal conduct.”

Acting U.S. Attorney General Todd Blanche added, “Purdue Pharma put profits over patient health and safety. The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs. Their actions contributed to the opioid crisis that claimed countless lives and destroyed entire families and communities.”

Purdue Pharma put profits over patient health and safety. The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs.
—Acting U.S. Attorney General Todd Blanche

He went on, “Today’s sentence is a prime example of the Department’s effort to redress past wrongs by rooting out and punishing unlawful conduct by companies that have contributed to the national crisis.”

Introducing Knoa

At the Newark sentencing, Purdue Chairman Steve Miller issued an apology, saying the company “deeply regrets and accepts responsibility” for its past conduct tied to the opioid crisis, Reuters reported.

Prior to the hearing, the company also said it respected the court process and the importance of hearing from victims.

A spokesperson for Knoa Pharma referred NJBIZ to comments made in a May 1 press release announcing the company’s launch.

According to the announcement, Knoa Pharma will operate as a public health-focused drugmaker that continues producing existing medicines, including opioids — but without promoting them and under strict independent oversight to limit misuse.

Any revenue generated will be directed toward opioid abatement efforts, including providing overdose-reversal drugs and addiction treatments at no profit, the company said.

In that announcement, Knoa Pharma Board of Directors Chair Norbert Riedel shared, “Knoa Pharma launches with the scientific expertise, governance, and operational discipline needed to deliver essential medicines safely and responsibly. Our focus now is on building a sustainable and accountable company that can meet critical patient needs and support the broader public health purpose entrusted to us.”

Knoa Foundation Board of Trustees Chair Paul Rothman added, “Knoa Pharma’s unique model ensures that the company’s resources directly support public health. Through not‑for‑profit access to overdose reversal medicines and treatments for opioid use disorder, Knoa Pharma is committed to providing care and saving lives in communities most affected by the opioid crisis.”