Purdue Pharma, Maker Of Opioid Painkiller OxyContin, Files For Bankruptcy !NEW!
Facing thousands of lawsuits alleging that it helped spark the opioid addiction crisis, privately held Purdue Pharma announced late Sunday that it had filed for bankruptcy, marking the collapse of a company that reaped billions of dollars from the sale of its opioid painkiller OxyContin and other drugs.
Purdue Pharma, maker of opioid painkiller OxyContin, files for bankruptcy
OxyContin maker Purdue Pharma filed for Chapter 11 bankruptcy protection on Sunday, collapsing under the weight of thousands of lawsuits from states and individuals seeking damages stemming from the opioid crisis.
Opioid drugmaker Insys Therapeutics filed for Chapter 11 bankruptcy protection June 10, marking the first drugmaker driven to bankruptcy due to its legal costs tied to the opioid crisis. Opioid maker Mallinckrodt reached a tentative settlement with two Ohio counties in early September following reports that it might file for bankruptcy.
Purdue Pharma filed for bankruptcy with a more than $10 billion plan to settle claims that it fueled the U.S. opioid epidemic by illegally pushing sales of its addictive OxyContin painkiller. The company's headquarters in Stamford, Conn., is shown here in 2019. Victor J. Blue/Bloomberg/Getty Images hide caption
This settlement could cap a contentious bankruptcy proceeding that started in September 2019. The case played out against the backdrop of surging drug overdose deaths, involving prescription painkillers and the synthetic opioid fentanyl.
Purdue Pharma, the company that made billions selling the prescription painkiller OxyContin, filed for bankruptcy in White Plains, New York, days after reaching a tentative settlement with many of the state and local governments suing it over the toll of opioids.
At issue is whether a bankruptcy court judge has the authority to grant members of the Sackler family who own the OxyContin maker protection from civil lawsuits over the toll of opioids. Family members have insisted on the legal shield in exchange for providing the money behind the settlement.
Purdue Pharma has filed for bankruptcy in a settlement aimed at preventing further legal action over painkiller OxyContin, blamed for plunging millions into addiction and fueling the US opioid crisis.
The aggressive marketing and pharmaceutical sales of opioids in the past decade have left a devastating wake of addiction and death in the United States. Now, individuals who have been harmed by prescription opioids have the chance to file claims against Purdue Pharma, the maker of the painkiller OxyContin. Until July 30 of this year, people who have suffered from the effects of prescription opioid use will have the opportunity to seek compensation.
The company that made billions selling the prescription painkiller OxyContin has filed for bankruptcy days after reaching a tentative settlement with many of the state and local governments suing it over the toll of opioids.
Citing sources familiar with the matter, Reuters reported Monday that Stamford, Connecticut-based Purdue Pharma was exploring a Chapter 11 filing amid financial liabilities from about 2,000 lawsuits against the company for allegedly contributing to the crisis. Purdue is the maker of OxyContin, a long-acting formulation of the opioid painkiller oxycodone.
(Reuters) - Members of the Sackler family who own Purdue Pharma LP are nearing an agreement to boost their more than $4 billion offer to resolve sprawling opioid litigation after negotiating with states that had objected to terms of the OxyContin maker's bankruptcy reorganization, according to a court filing.
Purdue, the maker of the highly addictive OxyContin opioid painkiller, filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and the Sacklers of fueling the U.S. opioid epidemic through deceptive marketing. The opioid abuse crisis has led to nearly 500,000 overdose deaths over two decades, according to U.S. data.
The amount is contingent on the sale of the family's international drug company, Mundipharma, which, like Purdue, has been criticised for overselling the benefits of its powerful prescription opioid painkillers and understating the risks.
Individuals who filed personal injury claims against Purdue Pharma related to its opioid painkiller OxyContin are expected to receive as much as $48,000 under the drugmaker's bankruptcy plan filed March 15, The Wall Street Journal reported.
NEW YORK (Reuters) - OxyContin maker Purdue Pharma LP is nearing a partial agreement to resolve widespread litigation over its alleged role in fueling the U.S. opioid crisis and plans to tussle with states opposing its settlement offer in bankruptcy proceedings starting as soon as next week, people familiar with the matter said.