Attorney General Ken Paxton played a leading role in a multistate effort to secure the bankruptcy reorganization plan for Purdue Pharma, Inc. (“Purdue”). This plan represents a major step toward accountability for one of the companies most responsible for the opioid epidemic. 

The plan, expected to become effective in spring 2026, establishes a new legal and financial framework for the Big Pharma giant. It creates Knoa Pharma, a successor company that will continue manufacturing OxyContin under strict operating injunctions designed to prevent abuse. The plan also transfers insurance and third-party claims to a Master Creditor Trust to strengthen oversight, transparency, and post-emergence litigation efforts. 

“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.” 

Under the plan, Texas is projected to receive approximately $294 million over 15 years to support opioid abatement, treatment, and prevention initiatives across the state. This plan follows a $7.4 billion global settlement led by Attorney General Paxton against Purdue, which was one of the most significant nationwide resolutions against a Big Pharma company for its role in the opioid crisis.