OxyContin maker Purdue Pharma files for bankruptcy


Purdue Pharma, the drugmaker accused of playing a major role in the opioid epidemic, filed for Chapter 11 bankruptcy protection in New York on Sunday. The move was expected after the company and its owners, the Sackler family, reached a tentative settlement with 24 states and thousands of local governments last week. Under the settlement, the Sacklers would wash their hands of Purdue, putting up $3 billion of the family's estimated $13 billion fortune and turning Purdue into a trust, with profits from OxyContin and other drugs going to the plaintiffs.
This isn't the end of the road for Purdue yet, though, as The Associated Press explains.
The thousands of plaintiffs who have not yet signed on to the settlement, including about half of U.S. states, will likely object to the settlement in bankruptcy court, and there are open questions about whether the proposed settlement is really worth $12 billion and how the money would be distributed. Purdue and the lawyers representing the parties that agreed to the settlement argue that nobody is served by long, costly litigation.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Recent court filings suggest much of the Sackler wealth has been stashed offshore since 2008, making it likely out of reach of U.S. plaintiffs, especially if the company dissolves without admitting wrongdoing or being found guilty in court. "The Sacklers are going to be left with plenty of money after this,'' Adam J. Levitin, a bankruptcy expert at Georgetown Law, tells The Washington Post. "There is a desire that the Sacklers pay some blood money, but it's never going to be enough to make everyone happy.''
OxyContin accounts for only a slice of the opioid drugs sold in the U.S., but Purdue's aggressive and misleading marketing is blamed for helping spark the opioid addiction crisis. Since 1999, more than 200,000 people have died from overdoses of prescription opioids.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
June 1 editorial cartoons
Cartoons Sunday's political cartoons include Donald Trump's golden comb-over, brain drain in America, and a new TACO presidential seal.
-
5 cartoons about the TACO trade
Cartoons Political cartoonists take on America's tariffs, Vladimir Putin waiting for taco Tuesday, and a new presidential seal
-
A city of culture in the high Andes
The Week Recommends Cuenca is a must-visit for those keen to see the 'real Ecuador'
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect