Purdue Pharma announced that it will file for Chapter 11 bankruptcy as part of a tentative deal to settle opioid litigation with 24 states in the US. Purdue noted that the settlement will provide more than $10 billion to address the opioid crisis, while the company's owners, the Sackler family, will contribute a further minimum of $3 billion.
"This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public," remarked Steve Miller, chairman of Purdue's board. Miller added that the deal "avoids wasting hundreds of millions of dollars and years on protracted litigation."
Along with 24 state attorneys general, the agreement in principle has been agreed with officials from five US territories, the plaintiffs' executive committee in the multidistrict litigation (MDL) and co-lead counsel in the MDL. "We will continue to work with state attorneys general and other plaintiff representatives to finalise and implement this agreement as quickly as possible," Miller said.
Under the settlement, Purdue will contribute all of its assets to a new company that will be governed by a new board selected by claimants and approved by the bankruptcy court. The new entity will contribute "tens of millions of doses of opioid overdose reversal and addiction treatment medications at no or low cost," including nalmefene and naloxone. Purdue added that the new company will "be bound permanently by injunctive relief, including marketing restrictions on the sale and promotion of opioids."
