Pudue Pharma declares bankruptcy

The proposal would see the Sacklers, one of America’s richest families, cede control of the pharmaceutical giant

NEW YORK (AFP) — Purdue Pharma has filed for bankruptcy in a settlement aimed at preventing further legal action over painkiller OxyContin, blamed for plunging millions into addiction and fueling the US opioid crisis.

The proposal would see the Sacklers, one of America’s richest families, cede control of the pharmaceutical giant, which is facing thousands of state and federal lawsuits, the company said Sunday.

If approved by a bankruptcy judge, Purdue says it expects the proposed restructuring to provide more than $10 billion to help tackle addiction and see the new company’s profits re-directed in ways that benefit the claimants and the American people.

Purdue Chairman Steve Miller said the settlement will “provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis.”