Purdue Pharma and its owners, the Sackler family, have tentatively reached a wide-ranging settlement with thousands of municipal governments, states and tribes nationwide that are suing the pharmaceutical industry for the devastation resulting from the opioid epidemic.
Specifics of the settlement have yet to be hammered out, but according to two people involved in the negotiations, the broad contours of the deal would involve Purdue filing for Chapter 11 bankruptcy. The company would be dissolved, and a new one would be formed to continue selling OxyContin and other medicines, with the profits used to pay the plaintiffs. Purdue Pharma also would donate drugs for addiction treatment and overdose reversal, several of which are in development.
Under the deal, the Sackler family would pay $3 billion in cash over seven years.