Purdue Pharma, the Manhattan Pharmaceutical company has tentatively settled with thousands of local municipals over opioid crisis that have laid down thousands of people on death bed. The firm owner Sackler Family has reached for a multi-billion dollar deal to resolve the opioid litigation.
OxyCotin maker will pay $3 Billion in cash over seven years of the deal. Over the two years, the company has been fighting 2,500 lawsuits. The Pharma firm is persuading other cities & families to join the deal. According to the people familiar with the case, Purdue Pharma will file for Chapter 11 Bankruptcy.
The Bankruptcy will bring out desolvation of the current company that will lead exit of Sackler’s and put trustees to run and pay the plaintiffs. To reduce the rage among plaintiffs, the company will donate drugs for addiction treatment and overdose which are still in development.
In a statement, Purdue spokesperson said: “Purdue Pharma continues to work with all plaintiffs on reaching a comprehensive resolution to its opioid litigation that will deliver billions of dollars and vital opioid overdose rescue medicines to communities across the country impacted by the opioid crisis.”
Purdue started producing OxyCotin in 1996 while the lawsuits piling started in 2017. The company is also alleged for aggressive marketing that contributed to the opioid crisis. These lawsuits have not only degraded the image of the company but cost them billions of dollars.
NewYork Attorney General Letitia James disgraced the whole deal by commenting that the billionaire family is “attempting to evade responsibility and lowball the millions of victims of the opioid crisis.”
A similar case to Purdue where Drugmaker Johnson & Johnson was ordered to pay $572 Million for propelling opioid drug crisis last month. Presently, the Sackler Family has reportedly committed an additional $1.5 Billion.