Opioid Dealer Purdue To Pay $12B, Declare Bankruptcy

September 11, 2019 Business, News

The Associated Press reports:

Attorneys for some 2,000 local governments say they have agreed to a tentative settlement with OxyContin maker Purdue Pharma over the toll of the nation’s opioid crisis. Attorney Paul Farrell said in a text message Wednesday that they have agreed to a deal that has been on the table for several weeks.

Sources with direct knowledge of the talks say that Stamford, Connecticut-based Purdue will pay up to $12 billion over time and that the Sackler family, which owns the company, will give up control. The sources spoke on condition of anonymity because they were not authorized to speak publicly.

The New York Times reports:



The company is expected to file for Chapter 11 bankruptcy imminently. The settlement, which was described by two people involved in the negotiations, involves the dissolution of Purdue Pharma as it now exists, the formation of a new company that will continue to sell its signature opioid, OxyContin, with the proceeds going to a public beneficiary company that will pay the plaintiffs.

Purdue Pharma also will donate “rescue” drugs, several of which are in development, for addiction treatment and overdose reversal.The Sackler family will pay $3 billion in cash over seven years. The settlement does not include a statement of wrongdoing. The company declined to comment. Still unclear is what the distribution of any Purdue and Sackler money would look like for 23 states and nearly 2,300 local governments and tribes that signed onto the deal.

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