Sackler Family’s Company Dissolved, Replaced by New Public Benefit Corporation Dedicated to Public Health and Ending Opioid CrisisUnder Strict Oversight, New Corporation Will Use Revenue to Fund Opioid Abatement EffortsNew York Attorney General Letitia James today announced that opioid manufacturer Purdue Pharma (Purdue) has shut down and ceased operations as part of a bankruptcy plan secured by Attorney General James, a bipartisan coalition of 54 other attorneys general, and other stakeholders. A new public benefit corporation, Knoa Pharma, LLC (Knoa Pharma), will begin operating in its place today and will be overseen by independent directors and trustees who have no association with Purdue. Knoa Pharma will be entirely owned by the Knoa Foundation, a newly established nonprofit. All members of the Sackler family, who fueled the opioid crisis through their ownership and operation of Purdue, are barred from selling opioids in the United States and will not have any involvement in the new company. Knoa Pharma will manufacture medications, including opioid products, safely and responsibly to address public health needs. It will be subject to strict oversight by an independent monitor and will be barred from lobbying and advertising its opioid products. After operating expenses, Knoa Pharma’s excess revenue will be dispersed to state, local, and tribal governments and to the Knoa Foundation in support of opioid abatement.
“Under the Sacklers’ control, Purdue developed, manufactured, and then misleadingly marketed its deadly opioids, destroying lives and communities across the country,” said Attorney General James. “This company that put profits over people for decades is now shut down forever. In its place, Knoa Pharma will provide resources to communities to combat the opioid crisis. While nothing will ever fully repair the damage done and lives lost to the opioid crisis, ending Purdue’s operations is an important step towards justice.”
The end of Purdue is part of a $7.4 billion settlement with members of the Sackler family secured by Attorney General James and a bipartisan coalition of attorneys general and other parties. In the first payment, Purdue will pay approximately $900 million and the Sacklers will pay $1.5 billion. The Sacklers will then pay $500 million in May of 2027, an additional $500 million in May of 2028, and $400 million in May of 2029. The settlement will deliver funding directly to communities across the country over the next 15 years to support opioid addiction treatment, prevention, and recovery programs and ends the Sacklers’ control of Purdue. On April 28, Purdue was sentenced in the United States District Court for the District of New Jersey on criminal charges for its role in fueling the opioid crisis.
Beginning today, Knoa Pharma will take over operations of Purdue’s assets. The company will be overseen by a board of trustees that includes leaders in public health, drug policy, and philanthropy, and a board of directors that includes experts in pharmaceuticals, corporate governance, and compliance. Knoa Pharma will be barred from marketing its opioid products, lobbying, and using opioid sales metrics for compensation by a court-ordered injunction. Former Montana Attorney General and Governor Steve Bullock will continue to serve as an independent monitor of the company, ensuring it complies with the court’s injunction.
New York Attorney General Letitia James today announced that opioid manufacturer Purdue Pharma (Purdue) has shut down and ceased operations as part of a bankruptcy plan secured by Attorney General James, a bipartisan coalition of 54 other attorneys general, and other stakeholders. A new public benefit corporation, Knoa Pharma, LLC (Knoa Pharma), will begin operating in its place today and will be overseen by independent directors and trustees who have no association with Purdue. Knoa Pharma will be entirely owned by the Knoa Foundation, a newly established nonprofit. All members of the Sackler family, who fueled the opioid crisis through their ownership and operation of Purdue, are barred from selling opioids in the United States and will not have any involvement in the new company. Knoa Pharma will manufacture medications, including opioid products, safely and responsibly to address public health needs. It will be subject to strict oversight by an independent monitor and will be barred from lobbying and advertising its opioid products. After operating expenses, Knoa Pharma’s excess revenue will be dispersed to state, local, and tribal governments and to the Knoa Foundation in support of opioid abatement.
“Under the Sacklers’ control, Purdue developed, manufactured, and then misleadingly marketed its deadly opioids, destroying lives and communities across the country,” said Attorney General James. “This company that put profits over people for decades is now shut down forever. In its place, Knoa Pharma will provide resources to communities to combat the opioid crisis. While nothing will ever fully repair the damage done and lives lost to the opioid crisis, ending Purdue’s operations is an important step towards justice.”
The end of Purdue is part of a $7.4 billion settlement with members of the Sackler family secured by Attorney General James and a bipartisan coalition of attorneys general and other parties. In the first payment, Purdue will pay approximately $900 million and the Sacklers will pay $1.5 billion. The Sacklers will then pay $500 million in May of 2027, an additional $500 million in May of 2028, and $400 million in May of 2029. The settlement will deliver funding directly to communities across the country over the next 15 years to support opioid addiction treatment, prevention, and recovery programs and ends the Sacklers’ control of Purdue. On April 28, Purdue was sentenced in the United States District Court for the District of New Jersey on criminal charges for its role in fueling the opioid crisis.
Beginning today, Knoa Pharma will take over operations of Purdue’s assets. The company will be overseen by a board of trustees that includes leaders in public health, drug policy, and philanthropy, and a board of directors that includes experts in pharmaceuticals, corporate governance, and compliance. Knoa Pharma will be barred from marketing its opioid products, lobbying, and using opioid sales metrics for compensation by a court-ordered injunction. Former Montana Attorney General and Governor Steve Bullock will continue to serve as an independent monitor of the company, ensuring it complies with the court’s injunction.




