Report: Purdue Pharma prepares for bankruptcy if no opioids settlement
Purdue Pharma, the maker of OxyContin, is preparing to file for bankruptcy by the end of September if it doesn't reach a settlement with the communities suing it over its role in the opioid epidemic, Reuters reports.
Why it matters: If Purdue claims bankruptcy without a payment agreement, the plaintiffs will likely receive less money than they would under the settlement Purdue pitched last month.
- The company offered a $10–12 billion payout as part of a negotiated bankruptcy case, but some states are unhappy with the offer.
What we're watching: The judge overseeing the massive consolidated case wants 35 state attorneys general to agree to a deal, which hasn't happened yet.
- Some attorneys general complain that under Purdue's proposal, the Sackler family, which controls the company, would pay too little.