Purdue Pharma filed for Chapter 11 bankruptcy protection late Sunday evening in White Plains, New York. The filing comes after the drugmaker attempted to settle more than 2,000 opioid-related lawsuits last week for more than $10 billion.
Here’s a breakdown of the status of the company, the bankruptcy filing and the lawsuits.
- Only half of the 48 states with lawsuits against Purdue agreed to the 11-figure settlement offered last week. Many called for the Sackler family, which controls Purdue, to contribute $4.5 billion instead of $3 billion to the settlement.
- U.S. Bankruptcy Judge Robert Drain is overseeing the case, and a hearing is set to take place on Tuesday. The company is planning to request that all lawsuits against it be temporarily halted.
- If the judge approves this request, it will affect states such as Connecticut, Massachusetts and New Jersey, which have not agreed to the settlement. Some states plan to object to Purdue’s request to halt litigation so they can move forward with their lawsuits.
- The drugmaker will likely avoid a trial set to take place in Cleveland next month. This would be the first federal opioid trial.
If the bankruptcy plan is approved, the Sackler family will relinquish control of the company, which would be turned into a trust. The organization would continue to sell Oxycontin, but profits would go to plaintiffs affected by the opioid crisis. Trustees would be placed in charge of the new entity and would be tasked with allocating payouts and overseeing its general operations.