OxyContin maker Purdue Pharma is exploring its options about filing for bankruptcy to address liabilities from hundreds of lawsuits alleging the company fueled America's opioid epidemic, according to reports by Reuters and The Wall Street Journal.
State and local governments have filed more than 1,000 lawsuits against drug makers in connection with the opioid crisis, according to federal statistics reviewed by The Associated Press.
Sources told Reuters that filing for Chapter 11 protection would allow the company to negotiate legal claims with plaintiffs and halt the lawsuits. But the sources added that a bankruptcy filing may not happen and that the drug maker hasn't made any final decisions on the matter.
In a statement released to Reuters, Purdue said it doesn't comment on its "financial or legal strategy," but are committed to making sure the business "remains strong and sustainable."
On Monday, Purdue asked a court to throw out a lawsuit from Massachusetts' attorney general that accused the company, its owners and top executives of deceiving patients and doctors about the risks of opioids.
While most of the opioid epidemic lawsuits name multiple defendants, the Massachusetts case focuses solely on Purdue and the Sackler family.
The Associated Press contributed to this report.