News that Purdue Pharma files for bankruptcy as part of a settlement involving the opioid crisis is spreading on Monday.
This bankruptcy will have Purdue Pharma using the Chapter 11 bankruptcy to conduct a reorganization of its company. This will specifically have it taking assets from the company and using them to settle the massive amounts of lawsuits it is facing over its alleged roll in the opioid crisis in the U.S.
According to Purdue Pharma, the bankruptcy will have it generating between $10 billion and $12 billion
to cover the costs of the settlement. This will include a $3 billion contribution from the Sackler family, which owns the OxyContin maker.
Once the reorganization is complete, Purdue Pharma will be reopening as a new company. This company will focus on the creation of products to reverse opioid overdose. The company would provide these products at little to no cost.
Know that the Purdue Pharma files for bankruptcy news means major changes for the company. This includes a complete change in its Board of Directors. These new Board members will be chosen by claimants in the lawsuits against it.
While Purdue Pharma files for bankruptcy may be enough for some, not everyone is happy with the settlement. Some legislators plan to oppose the deal as it doesn’t have the Sackler family appearing in court or facing a judgement. There are also concerns that the bankruptcy won’t result in $10 billion of value from the company, reports Reuters.
As of this writing, William White did not hold a position in any of the aforementioned securities.
