Purdue Files Bankruptcy Protection
OxyContin maker Purdue Pharma LP filed on Sunday night bankruptcy protection. The firm succumbs to pressure from over 2,600 lawsuits alleging Purdue for helping the deadly U.S. opioid epidemic.
In addition to that, the pharmaceutical company’s board talked on Sunday evening to approve the long-expected bankruptcy filing. Purdue has been pursuing to restructure under terms of a proposal to resolve the widespread litigation.
Moreover, the firm filed for Chapter 11 protection in a federal bankruptcy in White Plains, New York. And to settle lawsuits with 24 states, five U.S. territories, and lead lawyers for more than 2,000 cities, countries and other plaintiffs, they’ve reached a tentative deal.
However, there are still two dozen states who opposed or uncommitted to the proposed settlement. And this set the stage for contentious legal battles over who bears responsibility for a public health crisis. Also, this crisis claimed the lives of almost 400,000 people between 1999 and 2017.
Purdue and Sacklers
Meanwhile, thousands of cities and countries, together with almost every state, sued Purdue and some control the Sackler family. Aside from that, the lawsuits claim that the firm and family aggressively marketed prescription painkillers while misleading doctors and patients regarding their addiction and overdose risk. Also, these lawsuits seek billions of dollars in damages.
On the other hand, Purdue and the Sacklers denied these allegations.
Then, the opposing states such as Massachusetts, New York, and Connecticut, wanted to make sure the more of the Sacklers’ money will go towards a settlement. Also, they want to question the calculations of Purdue in valuing the overall deal at over $10 billion.
In the proposed settlement, the Saxklers would cede control of the pharmaceutical firm. And they offered $3 billion in cash and another $1.5 billion or more through the eventual sale of another company they own, the Mundipharma. Also, the family does not want to do any revision for the offer.
