OxyContin producer Purdue Pharma and its owners, the Sackler family, are in dialogue to settle over 2,000 opioid cases against the corporate for $10 billion to $12 billion, two sources aware of the matter said on Tuesday.
Purdue is among several drug producers and vendors that have been sued for feeding an opioid addiction crisis in the USA, which killed 400,000 Americans from 1999 to 2017, based on the Centers for Disease Control and Prevention.
The suits have challenged the Stamford, Connecticut-based Purdue Pharma of aggressively advertising and marketing prescription opioids while deceptive prescribers and consumers about risks from their extended use. Purdue and the Sacklers have dismissed the allegations.
Purdue said it was working with state attorneys general and different plaintiffs to reach a settlement, without specifying the amount.
There’s currently no settlement, and the discussions might collapse, the sources mentioned.
Executives for Purdue and the Sackler family held talks with cities, counties, and states on the outlines of the potential multibillion-greenback settlement last week in Cleveland stated a person accustomed to the matter.
During the meeting, Purdue drafted a plan to file for Chapter 11 bankruptcy protection as a tool for achieving the settlement, which the drugmaker hopes will address the cases, the person stated.
All the parties face a Friday deadline to update a federal judge on the standing of the meetings, the source said.
The drug producer has said the U.S. Food and Drug Administration (FDA) authorized labels for OxyContin that warned about risk and abuse related to treating pain. The Sacklers have argued they were passive committee members who approved routine management requests rather than micromanaging the advertising and marketing of OxyContin.