Purdue Pharma, maker of the painkiller OxyContin, has reached a tentative settlement with 22 state attorneys general and thousands of local governments who are suing the drug manufacturer, saying it catalyzed the opioid crisis.
The $10 billion to $12 billion settlement reportedly requires the dissolution of the company, which is accused of helping jumpstart the opioid epidemic, and a new company will be created to sell OxyContin and donate funds to combat the opioid epidemic. The company’s owners, the Sackler family, will pay $3 billion of the settlement out of their personal funds over the next seven years and give up control of Purdue Pharma, which is expected to file for Chapter 11 bankruptcy soon.
Close to 400,000 Americans are estimated to have died as a result of the crisis between 1999 and 2017.
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