The opioid addiction crisis is among our nation’s most urgent public health challenges and Purdue is committed to continuing our collaboration with law enforcement, healthcare professionals and policymakers to combat it.
On September 15, 2019, Purdue announced that it has reached an agreement in principle on a
framework for settling the U.S. opioid litigation facing the Company with 24 state attorneys general,
analogous officials from 5 U.S. territories, the Plaintiffs’ Executive Committee in the multidistrict litigation
(MDL), and co-lead counsel in the MDL.
The settlement structure is estimated to provide more than $10 billion of value to address the opioid
crisis. The key elements of the settlement, which is subject to court approval, include:
- The owners of Purdue contributing all of its assets to a trust or other entity established for the
benefit of claimants and the American people;
- The new company (“NewCo”) being governed by a new board selected by claimants and
approved by the Bankruptcy Court;
- NewCo potentially contributing tens of millions of doses of opioid overdose reversal and addiction
treatment medications at no or low cost;
- NewCo agreeing to be bound permanently by injunctive relief, including marketing restrictions on
the sale and promotion of opioids; and
- In addition to 100% of Purdue, the Sackler families contributing a minimum of $3 billion, with the
potential for substantial further monetary contributions from the sales of their ex-U.S.
Under the agreement reached among the parties, Purdue’s unique technical know-how and deep
experience in developing medicines will be used for the benefit of the American public. The settlement
framework contemplates that NewCo could provide to states and local communities, at no or low cost,
life-saving opioid overdose reversal medications such as nalmefene and naloxone.
To finalize and implement the settlement agreement, Purdue filed for reorganization under Chapter 11 of
the U.S. Bankruptcy Code as the next step in implementing this historic agreement in principle. This
court-supervised process is intended to, among other things, facilitate an orderly and equitable resolution
of all claims against Purdue, while preserving the value of Purdue’s assets for the benefit of those
impacted by the opioid crisis.
For more information on the settlement and chapter 11 filing, please visit
www.purduepharma.com/restructure. Court documents and additional information can be found at a
website administered by Purdue’s claims agent, PrimeClerk,
at https://restructuring.primeclerk.com/purduepharma or by calling the Company’s restructuring
information line, toll-free in the U.S., at (844) 217-0912. For calls originating outside of the U.S., please
dial +1 (347) 859-8093.