Purdue Pharma, a pharmaceutical company known for developing and marketing the painkiller OxyContin, has been at the center of numerous legal battles and controversies. The company has faced intense scrutiny and lawsuits due to its role in the opioid crisis in the United States. Many people are curious about the current status of Purdue Pharma and whether it has gone out of business.
Did Purdue Pharma go out of business? Purdue Pharma has not completely gone out of business, but it has filed for bankruptcy. In September 2019, Purdue Pharma filed for Chapter 11 bankruptcy protection as part of a settlement agreement to address the thousands of lawsuits filed against it. This move was intended to restructure the company and establish a trust to provide compensation to those affected by the opioid crisis.
The Bankruptcy Filing
The bankruptcy filing was a significant step for Purdue Pharma. By filing for Chapter 11 bankruptcy, the company aimed to resolve its legal liabilities while continuing to operate. The restructuring plan proposed by Purdue Pharma included the establishment of a public benefit trust, which would use the company’s assets to fund efforts to combat the opioid epidemic and provide compensation to victims. This plan, however, has faced opposition and legal challenges, making the future of the company uncertain.
Legal Settlements and Controversies
Purdue Pharma has reached several settlements with various states and local governments. In October 2020, the company agreed to a settlement with the U.S. Department of Justice, which included a $8.3 billion settlement and the dissolution of Purdue Pharma as it currently exists. The settlement also required the Sackler family, the owners of Purdue Pharma, to pay $225 million in civil penalties. Despite these settlements, many states and individuals continue to pursue legal action against the company and its owners, arguing that the proposed settlements do not adequately address the harm caused by the opioid crisis.
While Purdue Pharma has not gone out of business entirely, its future remains uncertain due to ongoing legal proceedings and the restructuring process. The company’s role in the opioid crisis has led to significant financial and reputational damage, and its ability to continue operating will depend on the outcome of the bankruptcy proceedings and legal settlements.