Purdue Pharma Files For New Chapter 11 Bankruptcy

The company pledged to give creditors including U.S. states and other parties over $7.4 billion.

Purdue Pharma has filed for a new Chapter 11 bankruptcy.

The filing is the latest move in a lengthy legal battle fought by the Sackler family and a bipartisan group of state attorneys general, who say the addiction epidemic that has killed hundreds of thousands of Americans was exacerbated by the marketing and sales of Purdue’s oxycontin painkiller.

The company previously filed for bankruptcy protection from creditors in 2019. The new filing means the Sacklers will no longer have ownership interest or a role with the new firm.

The company pledged to give creditors including U.S. states and other parties over $7.4 billion. The funds will compensate victims of the opioid crisis. The public benefit company will be created after Purdue is dissolved and its assets transferred.

The new company will be owned by an independent and newly created foundation.