Purdue Pharma, Maker Of Opioid Painkiller OxyContin, Files For Bankruptcy

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Nadja Norrington

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Jan 25, 2024, 10:26:16 AM1/25/24

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According to Purdue Pharma, the Chapter 11 bankruptcy settlement is worth $10 billion and will go towards addressing the opioid crisis. It would allow the continued sale of the powerful painkiller while restructuring the company owned by Richard Sackler and members of his family.

Purdue Pharma, the makers of the highly addictive painkiller OxyContin, filed for Chapter 11 bankruptcy Sunday as part of an agreement for settling a myriad of lawsuits it faces over the nation's opioid crisis.

Purdue Pharma, maker of opioid painkiller OxyContin, files for bankruptcy

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When news of the tentative settlement was announced last week, however, many state attorneys vowed to keep fighting the makers of OxyContin, the painkiller that many blame for fueling the nationwide opioid epidemic.

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.

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 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.

Fifteen more United States states reached an agreement with Purdue Pharma LP and members of its wealthy Sackler family owners that moved the OxyContin maker a step closer to resolving widespread opioid litigation and exiting bankruptcy protection.

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.

WASHINGTON (Reuters) - The U.S. Supreme Court is set on Monday to hear arguments over the legality of a roughly $6 billion bankruptcy settlement involving Purdue Pharma, maker of the powerful and highly addictive pain medication OxyContin that played a key role in the country's opioid epidemic.

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.

Oklahoma sued opioid manufacturers in 2017 over their marketing campaigns for painkillers. Cleveland County District Judge Thad Balkman agreed to break up trials to have only three companies face juries at one time. Purdue, J&J and Teva were slated to be the first three drugmakers to come to trial.

The agreement by the maker of OxyContin to settle thousands of lawsuits over the harm done by opioids could help combat the overdose epidemic that the painkiller helped spark. But that does not mean all the victims are satisfied.

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.

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.

Purdue is using the bankruptcy process to try to end years of lawsuits claiming that its marketing and sales strategy for the powerful painkiller OxyContin helped touch off and extend the opioid epidemic.