Sep 4, 2019

Report: Purdue Pharma prepares for bankruptcy if no opioids settlement

Caitlin Owens

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.

Go deeper: Purdue Pharma reportedly offers $10 billion to settle opioids lawsuit

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Rebecca Falconer

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
Bob Herman

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
Bob Herman

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