Tue. Jul 23rd, 2019

OxyContin maker Purdue Pharma exploring bankruptcy

Filing for Chapter 11 protection would halt the thousands of lawsuits alleging the drug manufacturer used deceptive practices to push addictive drugs that led to fatal overdoses.

OxyContin maker Purdue Pharma is exploring filing for bankruptcy as one of its option to address potentially significant liabilities from thousands of lawsuits alleging the drug maker contributed to the deadly opioid crisis sweeping the U.S., a source familiar with the matter confirmed to NBC News Monday.

The possible bankruptcy filing was first reported by Reuters.

The deliberations show how Purdue and its wealthy owners, the Sackler family, are under pressure to respond to mounting litigation accusing the pharmaceutical company of misleading doctors and patients about risks associated with prolonged use of its prescription opioids.

As of 2019, no members of the Sackler family are on the Purdue board of directors, said a source familiar with the matter, although the family still owns the company.

Purdue denies the allegations, arguing that the U.S. Food and Drug Administration-approved labels for its opioids carried warnings about the risk of abuse and misuse associated with the drugs.

Filing for Chapter 11 protection would halt the lawsuits and allow the drug maker to negotiate legal claims with plaintiffs under the supervision of a U.S. bankruptcy judge, the sources said…

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