Sep 6, 2019

DOJ investigating Purdue Pharma over OxyContin

Purdue Pharma is facing federal heat. Photo: Drew Angerer/Getty Images

The Department of Justice is probing Purdue Pharma, including issuing subpoenas to former employees, about whether the drug company failed to properly monitor illegal prescribing and ordering patterns for its OxyContin painkiller, the Wall Street Journal reports.

Why it matters: These are civil and criminal investigations. And if Purdue settles this with the DOJ, that "could further dilute the share of money available to settle suits brought by states and local governments," WSJ's Sara Randazzo writes.

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Purdue Pharma files for bankruptcy

Photo: Drew Angerer/Getty Images

Purdue Pharma, the maker of the highly addictive painkiller OxyContin, which faced thousands of lawsuits over the U.S. opioid epidemic, has filed for Chapter 11 bankruptcy, the drug company said in a statement Sunday

The big picture: Per the Wall Street Journal, Purdue filed for bankruptcy with a more than $10 billion plan to settle claims in White Plains, New York — less than a week after reaching a tentative settlement with states and local governments suing the firm for its role in the opioid epidemic.

Go deeperArrowSep 16, 2019

A hitch in Purdue Pharma's OxyContin settlement

Illustration: Sarah Grillo/Axios

Purdue Pharma is very close to a settlement with states, cities, counties and Native American tribes over its role in fueling the opioid epidemic — but part of the settlement puts those governments in an awkward position.

Driving the news: A major part of the proposed settlement would involve Purdue declaring bankruptcy and the Sackler family members conceding ownership.

Go deeperArrowSep 12, 2019

Purdue Pharma's bankruptcy test

Purdue Pharma's bankruptcy filing won't end the lawsuits. Photo: John Moore/Getty Images

Purdue Pharma's first bankruptcy hearing starts today, commencing a process that will attempt to resolve 2,600 lawsuits that accuse the OxyContin maker of instigating an opioid crisis that has killed tens of thousands of Americans.

The big picture: Purdue is using bankruptcy as a tool to expedite legal remedies, but many state and local governments are ready to sue the Sackler family owners beyond bankruptcy court, arguing the family doesn't deserve bankruptcy protection.

Go deeperArrowSep 17, 2019