Purdue Pharma files for bankruptcy as part of a $10 billion agreement to settle opioid lawsuits

Purdue Pharma has filed for bankruptcy as part of its plan to settle litigation with dozens of states and and other plaintiffs who say the company fueled the opioid crisis. Now the billionaire family that that owns the pharmaceutical giant is hoping the move "will end our ownership of Purdue."
Purdue Pharma, maker of the painkiller OxyContin, said its bankruptcy filing Sunday is part of an agreement to pay billions of dollars to states and local and tribal governments.
The company has denied any wrongdoing.
"This court-supervised process is intended to, among other things, facilitate an orderly and equitable resolution of all claims against Purdue, while preserving the value of Purdue's assets for the benefit of those impacted by the opioid crisis," the company said in a statement.
Purdue estimates after bankruptcy filings are complete, it will provide more than $10 billion in funding to address the opioid crisis. That will include settlements with 24 state attorneys general, five US territories and attorneys in multi-district litigation, the statement said.
"This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis," said a statement from Steve Miller, chairman of Purdue's board of directors.
"We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible."
The Sackler family, which owns the company, had been in talks for weeks to settle cases brought by more than 2,000 states, counties, municipalities and Native American governments against Purdue Pharma and other opioid companies.
The Sackler family issued a statement saying it hopes that the bankruptcy reorganization process "will end our ownership of Purdue and ensure its assets are dedicated for the public benefit."
"This process will also bring the thousands of claims into a single, efficient forum where the settlement can be finalized, reviewed by the bankruptcy court to ensure it is fair and just and then implemented," the Sacklers said.
"Like families across America, we have deep compassion for the victims of the opioid crisis and believe the settlement framework ... is an historic step towards providing critical resources that address a tragic public health situation."
Source: CNN