Purdue Pharma

Purdue Pharma faces resistance to its proposed opioids settlement

Protestors outside of Purdue Pharma's headquarters last month.
Protestors outside of Purdue Pharma's headquarters last month. Photo: Erik McGregor/LightRocket via Getty Images

Purdue Pharma has to resolve ongoing inquiries with the Justice Department before finalizing its plan to enter bankruptcy, the Wall Street Journal reports, citing the newly released terms of the settlement.

Why it matters: Purdue's bankruptcy plan, and its proposed settlement to resolve the national opioids lawsuit, are already facing resistance from state and local governments.

Drugmakers eye unusual opioids settlement

Illustration of a hand holding a small scale with pills on one side and money on the other
Illustration: Sarah Grillo/Axios

Drug companies facing expansive litigation over their role in the opioid crisis are exploring settling the cases by participating in Purdue Pharma's bankruptcy, the Wall Street Journal reports.

Why it matters: If successful, this would either end or shrink the massive federal case pending in Ohio, but it would require a lot of buy-in, including from state attorneys general. The companies — Endo, Johnson & Johnson, Teva, Allergan and Mallinckrodt — want to contribute money to a trust while being released from all liability.

Go deeper: Purdue Pharma's bankruptcy test