OxyContin maker braces for bankruptcy as settlement talks stall
Source: Reuters
OxyContin maker Purdue Pharma LP is preparing to seek bankruptcy protection before the end of the month if it does not reach a settlement with U.S. communities over widespread opioid litigation, three people familiar with the matter said, after some states balked at the company's $10 billion to $12 billion offer in August to end their lawsuits as part of a negotiated Chapter 11 case.
On Friday, Purdue lawyers had documents prepared for a Chapter 11 filing at a moments notice, Reuters has learned. A federal judge, who expects plaintiffs to update him on settlement progress this week, wants 35 state attorneys general on board with a deal, a threshold that has not yet been reached, the people familiar with the matter said.
Purdue lawyers have told lead attorneys for local governments and some state attorneys general for weeks, and again in recent days, that the company will have to file for bankruptcy without a settlement if one is not reached soon, one of the people said. This approach is known as a "free-fall" bankruptcy filing because it lacks consensus on a reorganization beforehand.
Strong opposition from some attorneys general such as those in Massachusetts and New York emerged last week after confidential discussions on Purdues settlement talks became public in media reports, with Connecticuts calling for Purdue to be broken up and shut down, and sold in parts. Their main sticking point is how much Purdue's controlling Sackler family will pay, the people said.
Read more: https://www.msn.com/en-us/money/companies/oxycontin-maker-braces-for-bankruptcy-as-settlement-talks-stall/ar-AAGL05o?li=BBnbfcN
ck4829
(35,077 posts)patphil
(6,182 posts)OxyContin is a semisynthetic opiod. I don't know how many deaths are directly related to this opiod, but it's got to be in the thousands each year.
Purdue Pharmaceuticals had to know their product was killing lots of people, but they continued to sell it.
To me, this isn't any different than the guy on the street corner who is peddling the drug to the users.
They are a criminal company, and need to be treated as such.
And, the Sackler family is no different than an organized crime family.
Patrick Phillips
sellitman
(11,607 posts)Hotler
(11,428 posts)Skidmore
(37,364 posts)going to prison?