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$12B Oxy settlement near

A tentative settlement announced Wednesday over the role Purdue Pharma played in the nation's opioid addiction crisis falls short of the far-reaching national settlement the OxyContin maker had been seeking for months, with litigation sure to continue against the company and the family that owns it.

The agreement with about half the states and attorneys representing roughly 2,000 local governments would have Purdue file for a structured bankruptcy and pay as much as $12 billion over time, with about $3 billion coming from the Sackler family. That number involves future profits and the value of drugs currently in development. In addition, the family would have to give up its ownership of the company and contribute another $1.5 billion by selling another of its pharmaceutical companies, Mundipharma.

Several attorneys general said the agreement was a better way to ensure compensation from Purdue and the Sacklers than taking their chances if Purdue files for bankruptcy on its own.

Arizona Attorney General Mark Brnovich said the deal "was the quickest and surest way to get immediate relief for Arizona and for the communities that have been harmed by the opioid crisis and the actions of the Sackler family."

Opioid addiction has contributed to the deaths of some 400,000 Americans over the past two decades, hitting many rural communities particularly hard.

The lawsuits against Stamford, Connecticut-based Purdue paint it as a particular villain in the crisis. They say the company's aggressive marketing of OxyContin downplayed addiction risks and led to more widespread opioid prescribing, even though only a sliver of the opioid painkillers sold in the U.S. were its products.

The tentative agreement and expected bankruptcy filing would remove Purdue from the first federal trial over the opioids epidemic, scheduled to begin next month in Ohio.

Even with Wednesday's development, many states have not signed on. Several state attorneys general vowed to continue their legal battles against the company in bankruptcy court and the Sacklers. Roughly 20 states have sued members of the Sackler family in state courts.

Connecticut, Massachusetts, Nevada, New York, Pennsylvania, North Carolina and Wisconsin are among the states saying they were not part of the agreement.

"Our position remains firm and unchanged and nothing for us has changed today," Connecticut Attorney General William Tong said in a statement.

He said the state would continue to pursue Purdue if it files for bankruptcy under the settlement agreement, as expected.

There was no immediate response from Purdue, and attempts to reach members of the Sackler family were not immediately successful. In court filings, Purdue has pointed out that its products were approved by federal regulators and prescribed by doctors.



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