NEW YORK—A U.S. mediator on Wednesday extended a deadline for negotiations by the owners of Purdue Pharma LP to resolve litigation alleging that they fueled the opioid epidemic, and bring the OxyContin maker a step closer to exiting bankruptcy.
Members of the wealthy Sackler family, who own Purdue Pharma, have been trying to reach an agreement with eight states and the District of Columbia, after they had blocked a previous settlement that included a $4.3 billion cash payment.
In a filing with the bankruptcy court in White Plains, New York, the mediator Shelley Chapman said she will file another mediation report “at the appropriate time”. She did not say how long talks might continue. Chapman was appointed in January.
Purdue filed for Chapter 11 protection in September 2019 after being hit with thousands of lawsuits claiming that the company and members of the Sackler family used deceptive marketing to fuel a nationwide opioid epidemic.
The company pleaded guilty to misbranding and fraud charges related to its Oxycontin marketing in 2007 and 2020. Members of the Sackler family have denied wrongdoing.
