A drug manufacturer at the heart of the nation’s opioid crisis is reportedly in negotiations to settle approximately 2,000 lawsuits over the marketing of the painkiller OxyContin. The proposed settlement of lawsuits brought by state and local governments could be worth up to $12 billion and would take ownership of Purdue Pharma away from the Sackler family, the company’s current owners.
Under the proposal, Purdue Pharma, which is based in Stamford, Connecticut, would enter into Chapter 11 bankruptcy protection and the Sackler family would give up ownership of the company. The family would also be required to contribute $3 billion in personal funds to the settlement award, according to three people familiar with the deal who spoke to reporters anonymously.
Another $1.5 billion would be contributed to the settlement amount by the sale of Mundipharma, another pharmaceutical company owned by the Sackler family. In 2016, Forbes ranked the Sacklers as the 19th-richest family in the U.S., with an estimated net worth of $13 billion.
After emerging from bankruptcy, the pharmaceutical maker would be transformed into a “public beneficiary trust,” with all profits being surrendered to the plaintiffs in the case. Purdue Pharma would also be required to provide its anti-addiction