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.
Now read: Teva: Maximum Pessimism »
Subscribe for full text news in your inbox