If you’ve been following our blogs, then you’re well aware of the company Purdue Pharma. One of the leading opioid manufactures (and primary dispenser of OxyContin), they’ve brought in billions of dollars over the past decade. Well now it’s a very different story, with leading news sites reporting that they have now filed for bankruptcy.
The latest move is part of an agreement to settle litigation with dozens of states who’ve filed suit over addictions and overdose deaths. When all is said and done, reps for the company claim that more than $10 billion will be applied to finalize the debts. This includes negotiations with 24 state attorneys general across five U.S. territories.
As Purdue chairman Steve Miller told the press, the Chapter 11 filing will actually work to benefit those who filed suit.
“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,” Miller said in a statement on behalf of Purdue. “We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible.”
The Sackler family (who we’ve also profiled) owns the company and released their own statement, sympathizing with those impacted by the opioid crisis.
“Like families across America, we have deep compassion for the victims of the opioid crisis,” a family spokesperson added. “And we believe the settlement framework is an historic step towards providing critical resources that address a tragic public health situation.”
In a final of gesture of what they claim to be goodwill, Purdue discussed plans to create another company called NewCo. This organization will reportedly produce medicines that can help reverse opioid overdoses, such as naloxone.
Many critics, though, are still unimpressed with Purdue’s latest actions. Some attorneys claim that the bankruptcy filing is a strategic move that will ultimately save the Sackler family millions. There are also reports that, prior to this, Purdue secretly transferred large sums of money into other “untouchable” business ventures.
Clearly, this high profile case is far from over. Though we do count these measures as a victory, we imagine the prosecutors will not be letting the Sackler family off the hook anytime soon.
