Attorney General Ken Paxton has announced that Texas played a key role in a multistate effort to finalize Purdue Pharma's sweeping bankruptcy reorganization plan, marking one of the most significant steps toward accountability for a company deeply tied to the nationwide opioid epidemic.
Expected to take effect in spring 2026, the plan restructures the company into Knoa Pharma, a successor entity that will continue producing OxyContin under strict court-ordered operating injunctions intended to prevent future abuse.
These controls aim to ensure closer oversight of production, marketing, and distribution practices that previously fueled widespread addiction.
The approved framework also transfers Purdue's insurance rights and related third-party claims into a Master Creditor Trust. This move centralizes oversight, strengthens transparency, and supports ongoing litigation against individuals connected to the company's prior misconduct.
"This plan reflects years of working to secure justice for the families and communities devastated by the opioid crisis," Paxton said. "The framework helps ensure that Purfdue 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."
Texas is projected to receive an estimated $294 million over 15 years, funding that will support opioid reduction initiatives statewide, including treatment programs, prevention efforts, and recovery services.
This reorganization follows the $7.4 billion global settlement, led in part by Paxton against Purdue, cementing a long-running effort to hold the company accountable for its role in fueling addiction and loss across the country.
The reorganization plan marks a critical step in delivering long-awaited justice and resources to communities harmed by the opioid epidemic.
