Deals
Purdue’s Bankruptcy Deal Has Holes the Size of 24 States
- Half of state attorneys general opposed plan, demand more cash
- Purdue’s pitfall: Bankruptcy may not halt all government suits
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If Purdue Pharma LP wants its bankruptcy plan to work, it’ll have to find a way to halt the kind of government lawsuits that normally can’t be stopped by a Chapter 11 case.
Purdue said the point of its court filing late Sunday night was to get protection from thousands of lawsuits tied to its aggressive sales of addictive opioids. To make that stick, it has to persuade Judge Robert Drain to delay as many as two dozen states from pursuing their cases until a solution is worked out, even though federal law says such investigations normally can’t be interrupted.