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Potential Bankruptcy of OxyContin, Purdue Pharma, Launches Thousands of Claims Against Cleveland Federal Judge

CLEVELAND, Ohio – Possible decision of OxyContin maker Purdue Pharman on bankruptcy proceedings can cause significant delays and complexities in thousands of litigation accusing the company of making a significant contribution to opioid-dependent death waves that have destroyed communities in every corner of the country .

Such a move, which was first announced at the Reuters monthly service, could report local and state governments to the Cleveland federal judge, and must wait to try to recover billions in medical, law enforcement and social affairs. services over the past few years.

Purdue is the most prominent pharmaceutical company known in the clothes, according to which drug companies have contributed to thousands of opioid deaths and overdoses across the country. Although such a decision cannot terminate the litigation procedure, it means that the transition of all litigation proceedings – even temporarily – from civil court judges to a bankruptcy court.

"Theoretically, they could do the day (rehearsal), and everything could stop," said Andrew Pollis, professor of law at the Case Western Reserve University.

Debt restructuring

Referring to anonymous sources, Reuters says bankruptcy reporting to Purdue is not certain, as the company did not make a final decision. Instead, the company will continue to fight litigation in the entire country.

Submitting a bankruptcy procedure under Chapter 11 would mean reorganizing the company's current and potential future obligations. It would also allow the company to pursue legal claims with governments and organizations under the supervision of a bankruptcy officer, according to sources from Reuters.

Purdue Pharma stated that “as a privately owned company, Purdue Pharma has a long-standing policy of not commenting on its financial or legal strategy.

“However, we are committed to ensuring that our business remains strong and sustainable. We have plenty of liquidity, and we remain committed to meeting our obligations to pharmaceuticals, suppliers and other business partners, ”the statement continues.

The number of opioid litigation procedures and the potential financial loss are huge. Most of the litigation is a defendant Purdue Pharma. There are some who belong to state courts, including the courts of the state of Ohio, but more than 1,600 federal court proceedings are pending before US District Judge Dan Polster in Cleveland.

The first opioid test will be held in May in Oklahoma. Polster is chairman of the negotiations with Cuyahoga and Summit counties on claims against drug companies. The judge last week decided that the towns of Cleveland and Akron would be heard later.

How do you go down

Pollis said that when a company is seeking bankruptcy, a possible dispute is usually seized. From there, though litigation and bankruptcy proceedings can take many forms, the professor said.

The case is taken over by a judge in bankruptcy. The courts have to decide whether litigation in pending opioid litigation is complicated without Purdue Pharma, because a complicated decision has been made because the company can participate in a claim even if the defendant is removed as a defendant, said Pollis.

However, at some points, the lawsuits must be settled by judgments, settlements or dismissals. This can be done separately or together with the other defendant companies and is decided by a court, Pollis said.

Polster, who has been on the federal track since 1998 in Cleveland, has called for a comprehensive solution to litigations before and before the state courts. It has not been successful in mediation yet.

Pollis added that the bankruptcy law did not allow the company to meet the debts caused by the fraud and that there were allegations of fraudulent behavior in the Purdue Pharma lawsuits.

However, "both the risk and the amount are high enough that no one seriously questions the integrity of filing for bankruptcy," the professor said.

Pollis said that many companies in lawsuits against asbestos-related health problems went bankrupt, leading to delays.

The spokesman for the applicant's executive committee did not reply to him on Monday.

Ohio Attorney General Dave Yost, who was in Washington, and told other government lawyers, President Donald Trump, told NBC News that "the bottom line says they don't want to pay to clean up their mess.

"We will fight to make sure," Yost said.

The lawsuits claiming that drug manufacturers overestimated the benefits and reduced the risk of addiction in the treatment of opioid pain, and that distributors were unable to properly control the suspicious treatment of painkillers.

Drug companies have argued that prescription painkillers, such as Oxycontin, allow legitimate medical use by the US Food and Drug Administration. They said they were committed to ensuring the proper use of prescription painkillers.

The opioid epidemic has hit hard the Cuyahoga County and Northeast Ohio, as it has seen thousands of opioid deaths in recent years.

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