Pharmaceutical company Purdue Pharma—which made billions of dollars selling its prescription painkiller OxyContin—has filed for bankruptcy after giving way to financial pressure from thousands of lawsuits alleging the company helped fuel the United States’ opioid epidemic.
The privately held company aims to restructure under terms of a proposal to settle the widespread litigation. The more than 2,600 lawsuits assert that the company aggressively sold OxyContin as a drug with a low risk of addiction, despite knowing that wasn’t true.
According to Purdue, their settlement restructure is estimated to provide “more than $10 billion” in value to address the deadly opioid crisis. When asked for additional comment, a Purdue spokesperson referred The Epoch Times to a company press release.
However, two dozen states remain opposed or uncommitted to the proposed settlement, setting the stage for contentious legal battles over who bears responsibility for a public health crisis that claimed the lives of nearly 400,000 people between 1999 and 2017, according to the latest U.S. data.
The main elements of the settlement, according to Purdue, range from the owners of the company contributing all assets to a trust or entity for the benefit of claimants, as well as the families of Purdue contributing a minimum of $3 billion.
To implement the settlement agreement, Purdue filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Purdue stated that the “court-supervised process” is aimed to, among other things, facilitate “an orderly and equitable resolution of all claims against Purdue, while preserving the value of Purdue’s assets for the benefit of those impacted by the opioid crisis.”
Purdue’s OxyContin is just one of many opioids prescribed, but critics assign a lot of the blame to the company because it developed both the drug and an aggressive marketing strategy. The lawsuits, which seek billions of dollars in damages, allege that Purdue and its owners misled doctors and patients about addiction and overdose risks.
The company hasn’t admitted to any wrongdoing and doesn’t intend to, Miller said in a conference call with reporters.
The Sackler family, whose members founded Purdue, told The Epoch Times that they have “deep compassion for the victims of the opioid crisis” and they believe the settlement framework “is an historic step towards providing critical resources that address a tragic public health situation.”
“It is our hope the bankruptcy reorganization process that is now underway will end our ownership of Purdue and ensure its assets are dedicated for the public benefit,” the Sackler family said via email.
“In no uncertain terms, any deal that cheats Americans out of billions of dollars, allows the Sacklers to evade responsibility, and lets this family continue peddling their drugs to the world is a bad one, which is why New York remains opposed to it,” James said.
A separate lawsuit filed by the Massachusetts attorney general stated that Purdue persuaded doctors who were reluctant to prescribe strong painkillers.