Purdue Pharma files for bankruptcy – what company/industry is next ?

Purdue Pharma filed for bankruptcy. What does it mean for lawsuits against the opioid manufacturer?

https://www.statnews.com/2019/09/16/if-purdue-pharma-declares-bankruptcy-what-would-it-mean-for-lawsuits-against-the-opioid-manufacturer/

Law firms seem to follow the same path on many lawsuit issues… with Purdue Pharma… even though Oxycontin was only some 2+% of the opiate prescription market place, Law firms are accusing (suing) them over causing the theoretical opiate crisis.  Of course, Purdue Pharma placed a “premium price” on their brand name medication and thus was able to generate a great deal of revenue.

Causing Purdue to file for Chapter 11 bankruptcy

What is very concerning about this settlement with Purdue… is that these lawsuit are wanting money from the family that owns this closely held corporation. A corporation is suppose to separate the assets of the corporation from the assets of the stock holders.  Could this establish a new precedent ?  Could our legal system go after the assets of people, mutual funds or others who own stock in a publicly held company.. who own stock in a particular company who our legal system targets for lawsuits for selling legal product that – our legal system decides needs to make restitution for selling a legal product that may cause health issues to people you buy/use their product.

Historically, stock holders only have at risk the value of the stock that they own in a particular company … if the business “folds” because of lawsuits and get assessed damages greater than the worth of the company assets …

Anything seems possible within our legal system ?

This is a similar path the state AG’s and legislatures after the company that brought Zohydro to market abt 5 yrs ago. Zohydro was a long acting Hydrocodone .. unlike Norco and other Hydrocodone products that contain Acetaminophen and are immediate release. Again Zohydro was a fairly pricey medication costing $10- $20/day for two of the 12 hr tablets.

Because Zohydro contained up to 50 mg of Hydrocodone and did not contain an anti-abuse formula… many of the State AG’s went “ape-shit” on this product being on the market.  They had no proof that the product was being abused or that these attorneys believed that their was a potential to be abused…   Zohydro was the only product that company had and so there was no “deep pockets” to go after and no proof of it being abused… so many State AG’s filed sue at the state level, causing the company to hire law firms in the various states… which the legal fees ended pushing the company into bankruptcy.

5 Responses

  1. This has turned into something that never should have began,And it all started with the tobacco lawsuit..Because these slime bag politicians saw a company with MEGA BUCKS they went for there throats! All that money that was promised to go to the “smokers,to give medication to quit smoking and everything that they promised..Turns out most states spent 10% of the monies to feed the “pigeons” an used the rest for their own “projects” Same thing here These companies arent even putting up a fight..They could have won on appeals in OK case. They all want to settle and it makes it worse for the CPP . Why are the companies folding like cheap suits?And you can bet this money will be stolen too! You can get all the suboxone,needles,rehab an every other friggen thing they give to addicts..But screw the people who used medicine as prescribed… We have to suffer!!

  2. Very poorly written article with several grammatical and contextual mistakes.

  3. Mmmmmmmmmm… Money….

  4. Kinda feals like a no win no win for cpp kinda. If they are gone after and fold. (Where do we turn to for pain help) n if they are in the wrong n no one addresses it who( like dea n I say that lightly lawyers ) is going to look out for public?

Leave a Reply to Dennis Cancel reply

%d bloggers like this: