Purdue bankruptcy may be imminent

“State and local governments have sought billions of dollars from Purdue Pharma as a way to hold the company and the family that owns it accountable for the nation's opioid epidemic, a potential payout that is now clouded in uncertainty after state attorneys general said settlement talks had broken down.”

The attorneys general directly involved in the negotiations with the maker of OxyContin and the Sackler family said they anticipated Purdue filing soon for bankruptcy protection.

“Bankruptcy would mark a major shift in the multidistrict litigation being overseen by a federal judge in Cleveland. It would likely take Purdue out of the first federal trial over the opioid crisis, scheduled to start Oct. 21.”

“The Sacklers could still be exposed to lawsuits. At least 17 states have sued one or more family member. But that could be a legally tenuous option for two reasons: (1) It may be very difficult for states to convince judges to rule that family members are personally liable; and (2) Even if that happens, plaintiffs may have problems levying on the Sacklers' assets if they are offshore."

The complete article can be found here.