Purdue Pharma, the manufacturer of OxyContin, is planning to spend between $10 billion and $12 billion to settle lawsuits against it. This possible deal was a result of confidential discussions between the lawyers of the company and other plaintiffs.
All cases were brought by counties, cities, and states. They allege Purdue Pharma for causing and extending the current opioid epidemic in the United States.
The conversations took place in Cleveland, Ohio with the participation of around 10 plaintiffs’ attorneys and state attorneys.
The lawsuits alleged that the sales practices of Purdue Pharma were misleading and responsible for thousands of deaths between 1999 and 2017. Also, some claims accused the Sackler family, the owner of Purdue Pharma, of draining the money of the company just to enrich themselves.
Both the Sackler family and Purdue Pharma have denied all of the allegations in these claims.
In a recent statement, the firm declared: “The communities and people affected by the current opioid epidemic need help now. We believe constructive resolutions are the best way to deal with it. The company is trying to cooperate with the state lawyers and plaintiffs to settle everything.”
At the meeting, the firm suggested a plan to declare bankruptcy and restructure itself into a for-profit organization. The Purdue lawyers said that the organization would provide up to $4 billion to the states, counties, and cities to save other people from opioid overdoses.
Combined with sale profits, the in-kind drugs might add up to $7 billion. This organization might exist in 10 years to compensate for the crisis.
Any profits from selling Nalmefene and OxyContin, which are causing the opioid crisis, might go to the states, counties, and cities if they agree with the settlement.
The Sackler family shows its intention to end the ownership of Purdue Pharma. Facing an increasingly vehement activist movement, they might agree to pay around $3 billion to settle these claims.
Money for the settlement probably comes from the selling of Mundipharma, a pharmaceutical firm owned by the Sackler family.
The legal team of the company said that if they don’t take the settlement, the firm might declare bankruptcy. However, the value of the company would be significantly lower than the amount of settlement offer.
Purdue Pharma is one of the opioid firms that are being sued by many counties and cities in the United States for intentionally misrepresenting the risks of those drugs to people with chronic pain.