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Drugmakers pursue new plan to wrap opioid suits

|About: Johnson & Johnson (JNJ)|By:, SA News Editor

Several drugmakers wrapped up in opioid-crisis suits are exploring a novel plan to shrink or end the sprawling litigation, the WSJ reports: by taking part in Purdue Pharma's bankruptcy.

Johnson & Johnson (NYSE:JNJ), Teva (NYSE:TEVA), Endo International (NASDAQ:ENDP), Allergan (NYSE:AGN) and Mallinckrodt (NYSE:MNK) are pursuing a global settlement of litigation through Purdue's Chapter 11 case, according to the report.

That would be through contributing to a trust in the case in exchange for release from liability.

The mechanism is not dissimilar to one available to automakers in the Takata defective airbag litigation.

It would need buy-in not only from Purdue and the owning Sackler family but also a critical mass of state AGs and suing municipalities -- and there are some 2,500 lawsuits brought by virtually every state along with local governments and Native American tribes.

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