OFFICIAL: Purdue Pharma Files For Bankruptcy

The filing is a centerpiece of an agreement to settle thousands of cases against the company for its role in the opioids crises. But it is expected to be vigorously contested by many states.

The New York Time writes:

“Purdue Pharma, maker of OxyContin, the drug widely seen as igniting the opioid crisis, filed for Chapter 11 bankruptcy on Sunday night, a move at the center of the company’s efforts to shield itself and its owners from more than 2,600 federal and state lawsuits.

The terms of the filing, which include a proposition resolution of those cases, are expected to be fiercely contested by a group of states — led by Massachusetts and New York — that have refused to settle with Purdue and are intent on pursuing the company’s owners, the Sacklers, considered one of the wealthiest families in the United States. A showdown in bankruptcy court in White Plains could come as early as this week.

Restructuring the company through bankruptcy was at the heart of a tentative settlement agreement reached last week between the company and thousands of cities and counties that have sued it in federal court for its role in the opioid epidemic. Twenty-four states and five United States territories have also accepted the agreement.

Purdue’s board of directors voted Sunday evening to approve the settlement in principle.

“This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public,” Steve Miller, chairman of Purdue’s board of directors, said in a statement. “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. ”

READ THE FULL STORY HERE: https://www.nytimes.com/2019/09/15/health/purdue-pharma-bankruptcy-opioids-settlement.html

WATCH THE HIGHWIRE’S COVERAGE OF PURDUE’S BANKRUPTCY