Purdue Pharma, one of the companies allegedly behind the opiod crisis in the United States and one that has allegedly minted billions through sale of prescription painkiller OxyContin, has ultimately filed for bankruptcy at White Plains, New York, after thousands of cases related to the opioid crisis were filed against it.
This move by the company was made after a few days since Purdue Pharma managed to reach a tentative settlement with a number of US states and local governments that had filed cases against the company over the opioid scandal.
Many analysts had been expecting the bankruptcy filing by the company even after the company struck the tentative settlement deal. The deal could cost the company of up to $12 billion over time.
The Stamford, Connecticut-based company however still faces legal battles and it is already spending millions as legal costs in its defense of the lawsuits which amount to more then 2,600 filed by government bodies and other entities.
The proposal has however not been signed by about half of the US states. And according to sources, a number of the states also want to oppose the settlement issue in the bankruptcy court and want to go ahead with the cases filed in other courts that have been filed against members of the Sackler family who are the owners of the company.
They have "deep compassion for the victims of the opioid crisis", said the families of late company owners Mortimer and Raymond Sackler in a statement, and added that they settlement agreement "is an historic step toward providing critical resources that address a tragic public health situation."
There have been objections to the amount mentioned in the settlement deal offer because, many say, the amount would not be close to the estimated $12 billion mark, as well as because such a settlement would also make the company immune to any actions against it even if it found guilty and liable for persecution by a jury or judge.
The allegations and cases against it have been denied by the company.
Among the crucial issues that are expected to be decided in the bankruptcy case include whether the legal cases against the company and the Sacklers filed in state courts can be moved ahead with and what would be the fate of the company itself.
The proposed settlement deal includes a clause to allow the company to continue to operate but the profits that it would make would be used to pay for the settlement. Another solution could be a judge ordering a sale off of the company to raise money.
Between 2007 and 2018, more than $4 billion were paid by Purdue to the members of the Sackler family, asserted court filings. It is believed that much of the money paid to the family is invested in liquid and fixed assets outside of the US which would be a complication in the lawsuits against the family in the opioid case.
(Source:www.focxnews.com)
This move by the company was made after a few days since Purdue Pharma managed to reach a tentative settlement with a number of US states and local governments that had filed cases against the company over the opioid scandal.
Many analysts had been expecting the bankruptcy filing by the company even after the company struck the tentative settlement deal. The deal could cost the company of up to $12 billion over time.
The Stamford, Connecticut-based company however still faces legal battles and it is already spending millions as legal costs in its defense of the lawsuits which amount to more then 2,600 filed by government bodies and other entities.
The proposal has however not been signed by about half of the US states. And according to sources, a number of the states also want to oppose the settlement issue in the bankruptcy court and want to go ahead with the cases filed in other courts that have been filed against members of the Sackler family who are the owners of the company.
They have "deep compassion for the victims of the opioid crisis", said the families of late company owners Mortimer and Raymond Sackler in a statement, and added that they settlement agreement "is an historic step toward providing critical resources that address a tragic public health situation."
There have been objections to the amount mentioned in the settlement deal offer because, many say, the amount would not be close to the estimated $12 billion mark, as well as because such a settlement would also make the company immune to any actions against it even if it found guilty and liable for persecution by a jury or judge.
The allegations and cases against it have been denied by the company.
Among the crucial issues that are expected to be decided in the bankruptcy case include whether the legal cases against the company and the Sacklers filed in state courts can be moved ahead with and what would be the fate of the company itself.
The proposed settlement deal includes a clause to allow the company to continue to operate but the profits that it would make would be used to pay for the settlement. Another solution could be a judge ordering a sale off of the company to raise money.
Between 2007 and 2018, more than $4 billion were paid by Purdue to the members of the Sackler family, asserted court filings. It is believed that much of the money paid to the family is invested in liquid and fixed assets outside of the US which would be a complication in the lawsuits against the family in the opioid case.
(Source:www.focxnews.com)
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