Purdue Pharma is considering filing for Chapter 11 bankruptcy protection, according to Reuters.
Doing so would halt the nearly 2,000 lawsuits brought against the drugmaker that claim the company contributed to the opioid crisis by the manufacturing of OxyContin. A Chapter 11 filing would allow Purdue to negotiate with plaintiffs in bankruptcy court.
Lawsuits have alleged that Purdue contributed to the opioid crisis through its marketing tactics. In June 2018, an unsealed lawsuit in Tennessee said that the drugmaker’s marketing tactics for OxyContin were aggressive and created a deceptive narrative. It also claimed Purdue sales agents targeted general practitioners with little to no experience with painkillers and described the drug as being safer than it is.
Purdue has denied the allegations, saying its FDA-approved labels contain warnings about the risk of abuse.
In early 2018, Purdue stopped marketing its opioid drugs to doctors and laid off half of its sales agents.
Massachusetts was the first state to file a lawsuit against both Purdue and members of the Sackler family in June 2018. The company and Sackler family members had also reportedly considered expanding into opioid-addiction treatment.