Purdue Pharma, the manufacturer of OxyContin, has reportedly reached a tentative agreement with 22 state attorneys general for the first time since talks began in August to settle over 2,000 lawsuits filed against the company behind the drug that many think started the opioid epidemic.
The company and attorneys from states, counties, and cities are closer than ever to reaching a final settlement deal, according to the Washington Post.
More than 2,000 lawsuits against Purdue and the Sackler family that controls the company have been consolidated, and U.S. District Court Judge Dan Polster is overseeing settlement talks between the family and 35 attorneys general across the country.
While terms of the settlement have not yet been finalized, and 13 state attorneys have yet to give the go-ahead, many of those states demands will be included in a final settlement. Most notably, the Sackler family will give up its stake in Purdue Pharma. The Connecticut-based manufacturer will be converted to a public beneficiary trust, from which money will go to states recovering from opioids pouring in since the 1990s.
The deal is purportedly worth $10 billion to $12 billion, and the Sackler family will have to contribute $3 billion of their own money to the trust. It’s unclear whether the family will agree to the demand from the attorneys general that the family contribute $4.5 billion, a figure the Sacklers thought unreasonable.
Purdue Pharma has advocated for a settlement deal since talks began in August. If Purdue does not settle the thousands of cases, the company will file for chapter 11 bankruptcy.
Purdue has been tight-lipped about settlement talks, saying only that “the company has made clear that it sees little good coming from years of wasteful litigation and appeals … Purdue believes a constructive global resolution is the best path forward, and the company is actively working with the state attorneys general and other plaintiffs to achieve this outcome.”
