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Purdue Pharma to stay in business as bankruptcy unfolds

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ET Health
18th September, 2019 07:44 IST
WHITE PLAINS, N.Y: A judge has cleared the way for OxyContin maker Purdue Pharma to stay in business while it pursues bankruptcy protection and settlement of more than 2,600 lawsuits filed over the opioid crisis.

Purdue lawyers secured permission on Tuesday for the company to maintain business as usual. That includes paying employees and vendors, supplying pills to distributors, and keeping current on taxes and insurance.

Purdue Pharma declared bankruptcy late on Sunday. Its continued viability is key to the company's settlement offer.

Under the proposal, the family that owns Purdue would turn the company over to a trust controlled by the very entities that are suing it. About half the states support the offer. It could be worth up to $12 billion over time.

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