Purdue Pharma filed for Chapter 11 bankruptcy in New York as part of its framework for settling litigation with states and local governments in a massive opioid lawsuit.
The settlement structure is said to provide more than $10 billion of value to address the opioid crisis. The funding will address settlements with 24 state attorneys general, officials from five US territories and the multi-district litigation. Under the terms of the deal, Purdue would give its assets to a new company whose board would be chosen by the plaintiffs in the litigation; the new company would donate medications, and the Sackler family, which owns Purdue, would pay at least $3 billion.
“This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis. We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible," said Steve Miller, Chairman of Purdue’s Board of Directors.
Read Purdue's case