Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

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.

Driving the news: To speed up the legal proceedings, several plaintiffs in the national opioid lawsuit have supported a settlement that would turn Purdue into a public benefit trust corporation, remove the Sacklers as owners, and allow governments to collect all future OxyContin profits.

  • Purdue declaring bankruptcy, and thus removing itself as a defendant, is part of the deal. Purdue and the Sacklers have admitted no wrongdoing.

Yes, but: Many states are preparing separate lawsuits against the Sacklers, arguing that the settlement is insufficient to help those struggling with addiction and that Purdue's bankruptcy is a maneuver to protect the Sacklers' wealth.

Where it stands: North Carolina Attorney General Josh Stein told Axios he is filing a lawsuit against the Sacklers in state court "imminently." More will follow.

  • "Purdue is a carcass of a drug company," Stein said. "The value is with the Sackler family. They should not get the benefit of protection from bankruptcy courts."

Between the lines: A major sticking point is what the Sacklers specifically will pay, considering they have taken out Purdue's assets over the years.

  • The Sacklers would pay $3 billion toward the tentative settlement, and possibly another $1.5 billion if a separate Purdue subsidiary is sold at a certain price. But Stein said all, not some, of the restitution from the Sacklers should be guaranteed.
  • The Sacklers have siphoned billions more dollars from Purdue into a complex web of offshore tax havens and trusts, the AP recently reported.
  • As one example, one of the trusts that owns Purdue is registered in a British territory off the coast of France, according to the bankruptcy filing.

Go deeper: Purdue's bankruptcy filing

Go deeper

The new Washington

Illustration: Sarah Grillo/Axios

The Axios subject-matter experts brief you on the incoming administration's plans and team.

Rep. Lou Correa tests positive for COVID-19

Lou Correa. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Rep. Lou Correa (D-Calif.) announced on Saturday that he has tested positive for the coronavirus.

Why it matters: Correa is the latest Democratic lawmaker to share his positive test results after last week's deadly Capitol riot. Correa did not shelter in the designated safe zone with his congressional colleagues during the siege, per a spokesperson, instead staying outside to help Capitol Police.

Far-right figure "Baked Alaska" arrested for involvement in Capitol siege

Photo: Shay Horse/NurPhoto via Getty Images

The FBI arrested far-right media figure Tim Gionet, known as "Baked Alaska," on Saturday for his involvement in last week's Capitol riot, according to a statement of facts filed in the U.S. District Court in the District of Columbia.

The state of play: Gionet was arrested in Houston on charges related to disorderly or disruptive conduct on the Capitol grounds or in any of the Capitol buildings with the intent to impede, disrupt, or disturb the orderly conduct of a session, per AP.