A proposed deal for Purdue Pharma LP to resolve more than 2,000 lawsuits over its role in the opioid crisis is facing pushback from a vocal group of state attorneys general who say it doesn’t bring in enough cash to satisfy their demands, according to people familiar with the matter.
Virtually every state, in addition to thousands of cities and counties across the U.S., has sued Purdue, claiming the company’s aggressive promotion of its painkiller OxyContin helped trigger an addiction epidemic.
Some states, including New York, Connecticut and Massachusetts, have in recent days criticized a proposed settlement with Purdue valued at as much as $12 billion, people familiar with the matter said. Among the states’ concerns is the deal’s reliance on future drug sales, how much money will be guaranteed and the Purdue-owning Sacklers’ contribution, these people said.
A Thursday phone call among representatives from several states ended with New York and Massachusetts’ attorneys general voicing their disapproval for the deal, according to people familiar with the matter.
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