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Purdue’s Massive Opioid Settlement Sparks Bankruptcy Court Fight

Nov. 11, 2020, 5:29 PM

Purdue Pharma LP’s massive settlement over claims it helped spark the opioid crisis is facing pushback in federal court, creating a potential stumbling block for the landmark deal.

Purdue has agreed to plead guilty to three felonies and pay $8.3 billion to settle federal probes of how it marketed the painkiller OxyContin. But the deal violates bankruptcy rules because it locks in details of Purdue’s future and forces the hand of other creditors, according to court papers filed by a group of U.S. states and bankruptcy professors.

States and cities suing Purdue have been in talks with the bankrupt ...

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