Purdue Pharma has reportedly reached a tentative agreement to settle some of the 2,000 lawsuits brought my municipalities, states and Native American tribes over the opioid epidemic.
Here’s a quick rundown of what it could mean for Purdue:
- The settlement will reportedly be 11 figures, between $10 billion and $12 billion. Purdue owners the Sackler family could pay as much as $3 billion.
- It’s not a done deal. The settlement reportedly does not include all of the lawsuits combined into one trial. A dozen states, including Massachusetts, Connecticut and New Jersey, have not agreed to this settlement.
- Chapter 11 could happen soon. The company is reportedly considering filing for bankruptcy to contain legal costs. That could happen as soon as this weekend.
- The end of Purdue, in its current form, could be the result. Purdue would be dissolved and a new company selling OxyContin reportedly would be created with profits going to an organization that would pay the plaintiffs.
- Purdue would also donate addiction treatment and overdose reversal drugs.
- Legal settlements have already cost Purdue mightily. It settled a suit with Oklahoma this year for $270 million.
- The combined federal lawsuit is set to go to trial on October 21.