02:16 - Source: CNN
Purdue Pharma in settlement talks over 2,000 lawsuits
CNN —  

The Sackler family could give up its ownership of Purdue Pharma and up to $4.5 billion of their own money, as one possible settlement option over the more than 2,000 lawsuits filed against their company, a person with knowledge of the negotiations tells CNN.

The source said the Sacklers would no longer own Purdue Pharma and pay $3 billion out of pocket, plus up to another $1.5 billion dependent on the sale of the company. In this framework, Purdue’s bankruptcy claim is being contemplated as a strategy to preserve the value of the company and pay out as many settlements as possible, the source added.

Purdue Pharma, which manufactures OxyContin, is at the center of the opioid crisis in America.

But earlier this week, two state attorneys general involved in the talks indicated the negotiations with the Sackler family had broken down, according to a letter provided to CNN by a person with knowledge of the negotiations.

According to the letter, the Sacklers had rejected two proposals, which included a payment of $4.5 billion to creditors and the states. No counter offers were given. The attorneys general from Tennessee and North Carolina also wrote they expected Purdue Pharma to file for bankruptcy protection “imminently.”

A Purdue spokeswoman reaffirmed to CNN on Monday that the company wanted to settle and “believes a settlement that benefits the American public now is a far better path than years of wasteful litigation and appeals.”

Previous reports from The New York Times, the Washington Post and NBC news said that the Sackler family would give up ownership of Purdue Pharma and pay at least $3 billion of its own money under terms of the settlement proposal.