Darren McCollester/Getty Images
Industryweek 34540 Oxycontin Pills Darren Mccollester Getty Images 5f90625f88e5a

US States Agree to Purdue Pharma Bankruptcy Plan

July 8, 2021
Ten states still oppose Purdue's proposals, which would see the pharmaceutical firm pay $4.3 billion to settle opioid-crisis related charges.

Fifteen U.S. states have dropped their opposition to a bankruptcy plan for OxyContin maker Purdue Pharma, which is accused of triggering America's opioid crisis, court documents show.

The agreement is a step towards the pharmaceutical firm paying $4.3 billion to settle cases related to the crisis, which has caused more than 500,000 overdose deaths in the United States over the past 20 years.

A mediator's report filed in a New York state bankruptcy court late Wednesday announced that the states had reached an agreement with Purdue Pharma that would see its owners, the Sackler family, provide an additional $50 million.

Under the terms of the deal, Purdue will also make public tens of millions of documents, including exchanges with its lawyers that have so far remained confidential.

The states include New York and Massachusetts which have been aggressively pursuing the company.

Purdue Pharma agreed in October 2020 to plead guilty to criminal charges relating to its aggressive promotion of OxyContin, a painkiller it knew to be addictive, as part of a deal with the US Justice Department worth $8.3 billion.

The charges included defrauding federal health agencies and of paying illegal kickbacks to doctors.

The company filed for bankruptcy in September 2019, saying it would restructure and help tackle addiction.

Ten states, including California, still oppose the proposals of Purdue and the Sacklers.

The opioid crisis, which has ravaged communities across the United States, has triggered a mountain of litigation in the country.

A host of civil and criminal charges have been launched, targeting pharmaceutical firms, distributors, wholesalers, pharmacies and doctors, with some of those cases resulting in negotiated settlements for heavy damages. 

Copyright 2021, Agence France-Presse

Popular Sponsored Recommendations

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

The Realist Guide to Sustainable Supply Chains

Sept. 28, 2023
A ‘roll up your sleeves’ guide to driving green line performance at your organization. Learn with this easy-to-understand ebook how to implement green supply chain management ...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!