Purdue Pharma prepares for bankruptcy ahead of opioid crisis trial
A report has found that the rejection of a settlement offer from Purdue has led to the company arranging to file for bankruptcy.
The OxyContin maker proposed a $10 billion to $12 billion payment ahead of its trial, according to the report, which state attorneys turned down because it was too low. At least 35 attorneys general must agree on a deal for it to be accepted, highlights the report.
As a result, the drug maker is seeking bankruptcy protection before the end of the month, says the report, with lawyers constructing a Chapter 11 filing.
Purdue lawyers have said to attorneys that the company will have to file for bankruptcy without a settlement if one cannot be agreed soon.
…the drug maker is seeking bankruptcy protection before the end of the month”
The pharmaceutical company is due to face more than 2,000 lawsuits across the US. Purdue denies the allegations against it.
Purdue is “actively working with state attorneys general and other plaintiffs on solutions that have the potential to save tens of thousands of lives and deliver billions of dollars to the communities affected by the opioid crisis,” the company said.
If the pharmaceutical company files for bankruptcy, it will avoid the trial due in October before an Ohio judge.