US states drop opposition to Purdue Pharma bankruptcy plan

Fifteen US states have stopped opposing a bankruptcy plan for OxyContin maker Purdue Pharma.

Purdue Pharma is accused of triggering America's opioid crisis.

The agreement to drop opposition is a step toward the pharma firm paying USD 4.3 billion to settle cases related to the crisis.

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This crisis has caused more than 500,000 overdose death in the US in last 20 years.

A mediator's report filed in a New York state bankruptcy court late Wednesday announced that the states had reached an agreement with Purdue Pharma that would see its owners, the Sackler family, provide an additional $50 million.

Under the terms of the deal, Purdue will also make public tens of millions of documents, including exchanges with its lawyers that have so far remained confidential.

The states include New York and Massachusetts which have been aggressively pursuing the company.

Purdue Pharma agreed in October 2020 to plead guilty to criminal charges relating to its aggressive promotion of OxyContin, a painkiller it knew to be addictive, as part of a deal with the US Justice Department worth $8.3 billion.

The charges included defrauding federal health agencies and of paying illegal kickbacks to doctors.

The company filed for bankruptcy in September 2019, saying it would restructure and help tackle addiction.

(With inputs from agencies)