The Maker of OxyContin Explores Filing For Bankruptcy

Purdue Pharma LP, the company that makes OxyContin, is exploring bankruptcy according to sources familiar with the situation.

The pharmaceutical company is considering filing for bankruptcy in order to address what could be major liabilities from around 2,000 lawsuits against the company.

Purdue Pharma is being blamed for contributing to the opioid addiction crisis in the U.S. but denies the allegations and has argued that the FDA’s approved labels for its opioids carried warnings about the risk of abuse and misuse associated with the pain treatments.

According to the sources, if the company were to file for Chapter 11 protection, it would halt the lawsuits and let the company negotiate legal claims with plaintiffs under the supervision of a U.S. bankruptcy judge.

There are over 1,600 lawsuits consolidated in an Ohio federal court, that accuse not only Purdue, but other opioid makers of using deceptive practices to push the addictive drug on to people which have led to overdoses.

“We will oppose any attempt to avoid our claims, and will continue to vigorously and aggressively pursue our claims against Purdue and the Sackler family,” Connecticut Attorney General William Tong said

Connecticut hass a case against Connecticut-based Purdue.

“As a privately-held company, it has been Purdue Pharma’s longstanding policy not to comment on our financial or legal strategy,” Purdue said in a statement.

“We are, however, committed to ensuring that our business remains strong and sustainable. We have ample liquidity and remain committed to meeting our obligations to the patients who benefit from our medicines, our suppliers and other business partners.”

A bankcrupty is not certain said the sources.