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Purdue Pharma Files For Bankruptcy, Consistent with Settlement Framework

FOR IMMEDIATE RELEASE
September 16, 2019

Purdue Pharma Files For Bankruptcy, Consistent with Settlement Framework

SALT LAKE CITY — Purdue Pharma announced today it has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York, on behalf of itself and its affiliated U.S. companies.

This bankruptcy has been anticipated for some time. This bankruptcy filing is consistent with the settlement framework agreed upon by a bipartisan group of 29 attorneys general, including Sean D. Reyes, over 2,000 cities and counties, Purdue Pharma, and Purdue’s owners.

Pursuant to that framework, and with the approval of the bankruptcy court, this bankruptcy means Purdue will no longer exist. It will never again make, sell, or market another opioid product in the United States or anywhere in the world.

In accord with the framework:

  • The Sackler family will give up not only Purdue but also all the family’s international pharmaceutical holdings.
  • The proceeds of those sales are guaranteed to provide billions of dollars to the States and other plaintiffs to help address the devastation of the opioid epidemic.
  •  By the terms of the framework, the Sacklers will be out of the pharmaceutical industry forever.

No other plan on the table has any assurance of accomplishing these things.

These pharmaceutical companies have been the foundation of the Sackler family fortune. The liquidation of these assets will convert a huge portion of the Sacklers’ wealth into resources for our communities.

While the end of Purdue marks an important moment in the struggle against the opioid epidemic, there is much work yet to be done. Our office, along with all the states and subdivisions supporting this settlement, will continue our investigation and litigation against all other parties responsible for this epidemic.

“Purdue was morally bankrupt and now it is legally so,” said Attorney General Sean D. Reyes. “Although there is no dollar amount that will undo the pain and suffering so many families have endured, I’m focused on getting resources to Utahns as quickly as possible.

“We’ve known for some time that bankruptcy was a likely outcome in this case. That is why we have worked so urgently as attorneys general to negotiate a proposed plan that would bring immediate relief and long-term resources to local communities across our states to prevent further devastation from this opioid threat. 

“Our plan also assures the Sacklers are out of pharmaceuticals and Purdue is out of business. Additionally, any assets that can be sold will yield potentially lifesaving treatment, recovery, prevention and education dollars to Utah and its counties and cities. 

I’m pleased to serve as one of nine attorneys general on the ad hoc committee to represent the interests of the states in this proceeding.”

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