On April 7, Purdue Pharma L.P. filed a motion asking a New York bankruptcy judge to extend a stay over the opioid lawsuits filed against it and the owner of the company, the Sackler family.
According to the motion filed, the company stated that the proposed Chapter 11 plan of reorganization, which was filed last month might get affected if the litigation resumes before it submits the Chapter 11 plan to the court.
The motion also states that the company and its creditors are involved in intense negotiations to find a resolution over the claims and they believe that a plan disclosure statement to submit to the court will be ready by early May.
Last month, the company was granted a 30-day extension for an injunction, which has been in place since October 2019 that halted opioid lawsuits against the company and the Sackler family. In the same month, the company filed a proposed Chapter 11 plan of reorganization, which included an agreement that the Sackler family would contribute $4.275 billion to a trust that is set up to resolve opioid-related claims.
The company filed for Chapter 11 protection in September 2019, following its announcement of a tentative settlement deal with 24 states over the opioid crisis. The tentative deal requires Purdue to be turned into a public trust, share profits with claimants against the estate, and fund programs concerning the opioid epidemic.
The New York Attorney General's (AG) lawsuit over the opioid crisis has also got delayed due to the concerns related to COVID-19, and the Suffolk County Supreme Court Justice Jerry Garguilo indicated that the trial will likely begin in June.
