Purdue files for bankruptcy in bid to settle opioid crisis cases
Purdue Pharma has filed for bankruptcy in a settlement agreement in a move it hopes will head off further legal proceedings in relation to its role in spreading the opioid crisis in the US, the company said in a statement on Sunday. Owned by the wealthy Sackler family, the pharmaceutical giant is facing thousands of state and federal lawsuits blaming its prescription painkiller OxyContin for plunging millions of Americans into addiction.
If approved by a bankruptcy judge, Purdue says that it expects the proposed restructuring to provide more than $10 billion to help tackle addiction and see the new company’s profits re-directed in ways that benefit the claimants and the American people. Purdue Chairman Steve Miller said the settlement will “provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis.”
The company has filed for reorganization under Chapter 11 of the US Bankruptcy Code and, if the proposal receives court approval, it will then dissolve and transfer its assets to a trust managed by a new governing board.
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