Purdue Pharma is Exploring Bankruptcy
Purdue Pharma, the manufacturer of Oxycontin, is exploring the idea of bankruptcy to protect itself from over a thousand lawsuits filed across the country blaming them, in part, for the opioid addiction crisis that has claimed thousands of lives in states across the US.
The manufacturer of Oxycontin, as well as the Sackler family that controls the majority of the company, say they are under duress due to the massive litigation they face by counties, cities, and states. They have been repeatedly accused of misleading doctors through marketing and sales pressures, without mentioning the risks of addiction or downplaying those risks entirely.
The bankruptcy type that Purdue is considering is Chapter 11, which would stop the lawsuits from moving forward as Purdue settles the trials under the direction of a bankruptcy judge. Purdue hired law firm Davis Polk & Wardwell LLP for restructuring advice last August, making litigants nervous about …