Purdue Pharma has proposed paying an additional approximately $500 million in cash to settle hundreds of thousands of opioid lawsuits.
As part of a proposed bankruptcy settlement, the payments would be spaced out over the next decade. The Sackler family that owns the company has earlier agreed to pay an additional $4.2 billion to settle a range of civil claims. The total settlement amount is roughly $4.28 billion.
The latest proposal has immediately faced opposition from two dozen state attorneys general.
The proposal, which would also strip the Sackler family of Purdue Pharma ownership, would need approval from a federal bankruptcy court in White Plains, N.Y.
But the agreement would allow the family to continue managing offshore subsidiaries for at least seven years.
Purdue family admitted in 2007 and 2020 that it illegally marked opioids such as OxyContin in plea deals with the Justice Department.
The latest proposal would turn Purdue Pharma into a new company with an independent board.
The company would continue selling OxyContin and other drugs, but the company would prioritize medicines that treat overdoses and opioid addiction.
“With drug overdoses still at record levels, it is past time to put Purdue’s assets to work addressing the crisis,” said Purdue Pharma president Steve Miller in prepared remarks. “We are confident this plan achieves that critical goal.”