OxyContin maker Purdue Pharma appears headed for bankruptcy.
Two weeks after word got out that OxyContin maker Purdue Pharma and the billionaire Sackler family that owns it were working a deal to give up ownership of the company and pay billions to settle thousands of federal and state lawsuits blaming the company for creating a national opioid epidemic, The Associated Press reported that the company is expected to file for bankruptcy after settlement talks went south. The news comes just a month before the first federal trial is set to begin.
Purdue, the Sacklers, and a group of state attorneys general had been trying for months to negotiate a satisfactory deal, but The Associated Press reports that the family had rejected two offers brought by the states involving payouts under the settlements, and opted not to counter.
“As a result, the negotiations are at an impasse, and we expect Purdue to file for bankruptcy protection imminently,” Tennessee Attorney General Herbert Slatery and North Carolina Attorney General Josh Stein wrote in an email to the other attorneys general involved in the case.
Purdue had agreed to give up ownership of its company and enter a structured bankruptcy worth between $10 billion and $12 billion. About $3 billion of that would come from the Sackler family. The family would also give up $1.5 billion from the sale of another company it owns, Mundipharma. The states had asked for assurance that the $4.5 billion the family was offering to pay out would actually be paid by the family. “The Sacklers refused to budge,” the attorneys general email said.
Beasley Allen has an Opioid Litigation Team, which includes these lawyers: Rhon Jones, Parker Miller, Ryan Kral, Rick Stratton, Will Suttonand, and Jeff Price. This team represents the State of Alabama, the State of Georgia, and numerous local governments, as well as other entities in the MDL.