Purdue Pharma files for bankruptcy as part of settlement

FILE - In this Sept. 12, 2019, file photo, cars pass Purdue Pharma headquarters in Stamford, Conn. The company, which makes OxyContin and other drugs, filed court papers in New York on Sunday, Sept. 15 seeking Chapter 11 bankruptcy protection. (AP Photo/Frank Franklin II, File)
FILE - In this April 2, 2018, file photo, a pharmacist in San Francisco poses for photos holding a bottle of OxyContin. In court papers filed in New York on Sunday, Sept. 15, 2019, Purdue Pharma, the drug's manufacturer, flied for Chapter 11 bankruptcy protection. (AP Photo/Jeff Chiu, File)
FILE - This Feb. 19, 2013, file photo shows OxyContin pills arranged for a photo at a pharmacy in Montpelier, Vt. Purdue Pharma, the company which makes OxyContin and other drugs, filed court papers in New York on Sunday, Sept. 15, 2019, seeking Chapter 11 bankruptcy protection. (AP Photo/Toby Talbot, File)
FILE - In this Sept. 12, 2019, file photo, cars pass Purdue Pharma headquarters in Stamford, Conn. The company, which makes OxyContin and other drugs, filed court papers in New York on Sunday, Sept. 15 seeking Chapter 11 bankruptcy protection. (AP Photo/Frank Franklin II, File)

The company that made billions selling the prescription painkiller OxyContin has filed for bankruptcy days after reaching a tentative settlement with many of the state and local governments suing it over the toll of opioids.

The filing late Sunday night in White Plains, New York, was anticipated before and after the tentative deal, which could be worth up to $12 billion over time, was struck.

But legal battles still lie ahead for Purdue. About half the states have not signed onto the proposal. Several of them plan to object to the settlement in bankruptcy court and to continue litigation in other courts against members of the Sackler family, which owns the company.

The bankruptcy means that Purdue will likely be removed from the first federal opioid trial, scheduled to start in Cleveland on Oct. 21.

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