Purdue Pharma’s Proposed Settlement
Purdue Pharma, an OxyContin maker firm, filed for bankruptcy protection on Sunday. The company has been pursuing to restructure under terms of a proposal to settle the litigations.
In addition to that, thousands of cities and nearly all states sued the firm and some controls Sackler family. According to the lawsuits, the pharmaceutical company and the family aggressively marketed prescription painkillers. And at the same time, it misleads doctors and patients about their addiction and overdose risks. However, Purdue and the Sacklers refused to admit any of the allegations.
Massachusetts, New York, Connecticut, and other states want the Sacklers to make sure more of their money will go to the settlement. Also, they doubted Purdue’s calculations valuing the overall deal at more than $10 billion.
On the other hand, the Sacklers would cede control of Purdue in the proposed settlement. And they are willing to give $3 billion in cash plus $1.5 billion or more through the eventual sale of its another firm, Mundipharma. The Sacklers decline to have some revisions to their offer.
Purdue Chairman Steve Miller stated, “This is the fork in the road. There are only two ways to go from there.”
Plans of Purdue
According to Miller, Purdue will argue in opposing states. And if they fight to the settlement, it will likely end up in protracted litigation, increasing legal fees, and depleting value. As a result, this might steer to U.S. communities reeling from opioid abuse. Then, he explained bankruptcy proceedings as the most suitable plan for finalizing and implementing a global resolution to the litigation.
Moreover, the Sackler family controlling Purdue are hoping that those who oppose the current settlement offer would sooner or later change their minds.
The family stated, “It is our hope the bankruptcy reorganization process that is now underway will end our ownership of Purdue. And ensure its assets are dedicated for the public benefit.”
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