OxyContin maker Purdue Pharma has filed for Chapter 11 bankruptcy, touching off what could be a fierce battle by dozens of states hoping to recoup billions spent fighting the opioid crisis.
As reported by The New York Times, there are over 2,600 pending federal and state lawsuits lodged against Purdue, and the pharmaceutical giant has proposed a resolution to most of them as part of its bankruptcy filing. The move was approved Sunday night by Purdue's board of directors.
However, one group of 26 states has refused to settle with Purdue under the proposed arrangement. That sets the stage for lengthy legal battles between the states, Purdue Pharma and the wealthy Sackler family that owns the company, the Times said.
The first legal fight could occur as early as this week