Purdue Pharma – The Company Involved in Opioid Crisis, Files for Chapter 11 Bankruptcy
The infamous pharmaceutical company Purdue Pharma has finally filed for Chapter 11 Bankruptcy, the filing for Chapter 11 was one of the terms of agreement to settle the ongoing cases against the company. Purdue Pharma is maker of a drug called OxyContin, which is considered to be the culprit behind the Opioid crisis. The company decided to take this action to protect the owners and itself from more than 2000 Federal and State lawsuits. A group of 26 states is not going to settle with Purdue, they are going to pursue the Sacklers in the courts, they are one of the wealthiest families in the USA, they own the company. A fierce drama is expected in bankruptcy court of White Plains this week. The management was looking for restructuring the company that’s possible by means of bankruptcy, thousands of cities, counties decided to settle the cases against the company last week.
The states who have refused to settle the matter with Purdue Pharma are Massachusetts, New York, New Jersey, Connecticut, Pennsylvania, California, Illinois, Delaware, North Carolina, Virginia, and others. However, only twenty-four states and five United States territories have accepted the settlement. The board members of Purdue did the voting to approve the settlement. In this settlement framework, the wastage of dollars worth millions and time on protracted litigation has been avoided. The company has promised to provide billions of dollars, essential resources to the people suffered from Opioid crisis.As per the terms of settlement, the Sacklers have to give up their ownership of Purdue, and pay $3 billion cash. They are also required to sell Mundipharma, a Britain-based company they own. They money generated from this sale is going to be contributed to settlement pot. Purdue Pharma will be turned into a public benefit trust. The profits that are generated by OxyContin sale and other products would pay for settlement amount over the installment period of seven years.