Purdue Pharma, the maker of OxyContin, is set to be dissolved and replaced by a new company focused on the public good. This transition comes as a sweeping legal settlement resolving thousands of lawsuits takes effect.
A federal judge in a New Jersey federal court delivered a criminal sentence on Tuesday, completing a plea deal that clears the way for the company to dissolve in bankruptcy. The sentencing follows investigations into the company's sales practices, specifically regarding charges of deceiving government regulators and paying kickbacks to doctors to boost opioid sales.
The company was sentenced to $5.5 billion in fines and penalties. These assets will help fund a $7.4 billion settlement intended to compensate people harmed by the opioid epidemic.