OxyContin maker Purdue Pharma LP is nearing a partial agreement to resolve wides...
NEW YORK - OxyContin maker Purdue Pharma LP is nearing a partial agreement to resolve widespread litigation over its alleged role in fueling the U.S. opioid crisis and plans to tussle with states opposing its settlement offer in bankruptcy proceedings starting as soon as next week, people familiar with the matter said.
More than a dozen other states remain opposed or uncommitted to the deal, setting the stage for a legal battle over Purdue’s efforts to contain the litigation in bankruptcy court, they said. States were expected on Wednesday to update a federal judge on the settlement offer’s support, which remained in flux, the people said.
New York, Massachusetts and Connecticut, where privately-held Purdue is based, are among the states opposed to the current offer and have pushed the family to guarantee $4.5 billion, the people said. The suits allege Purdue aggressively marketed prescription painkillers while misleading doctors and patients about their addiction and overdose risks. Purdue and the Sacklers have denied the allegations.With negotiations over the family’s contribution to a settlement at loggerheads, Purdue is preparing to file for bankruptcy protection as soon as this weekend or next with the outlines of a settlement in hand, albeit one lacking support from many states, the people said.
One reason Purdue is eyeing a bankruptcy filing soon is to avoid an Oct. 21 trial, the people said. That trial, stemming from widespread lawsuits largely brought by local governments that have been consolidated in an Ohio federal court, risks a verdict with outsize damages Purdue could not withstand, one of the people said.
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