Purdue Pharma

Updated at 1:22 p.m. ET

The family that owns Purdue Pharma pulled billions of dollars from the company after introducing its signature opioid medication, OxyContin, growing personally wealthy as the heavily marketed drug took on a significant role in a nationwide addiction crisis.

Purdue Pharma, the maker of OxyContin, filed for Chapter 11 bankruptcy protection Sunday night, just days after striking a settlement with more than 2,000 local governments over its alleged role in creating and sustaining the deadly opioid crisis.

Purdue Pharma, the maker of the opioid drug OxyContin, has reached a tentative deal worth billions of dollars that would resolve thousands of lawsuits brought by municipal and state governments who sued the company for allegedly helping to fuel the opioid crisis.

The pending settlement likely means Purdue will avoid going to trial in the sprawling and complicated case involving some 2,300 local governments across 23 states.

Plan Paused To Divide Potential Settlement From Opioid Lawsuits

Jun 25, 2019
OxyContin pills are arranged for a photo at a pharmacy in Montpelier, Vermont.
Toby Talbot / AP

State and local governments suing over the toll of a nationwide opioid crisis agree that companies in the drug industry should be held accountable, but they have differences on who should have the power to strike any settlement, and how it should work.

America's big drugmakers and pharmacy chains are scrambling to respond to hundreds of lawsuits tied to the deadly opioid epidemic. Billions of dollars are at stake if the companies are found liable for fueling the crisis.

Even before judgments are rendered, companies like Purdue Pharma, Johnson & Johnson and CVS are already suffering damage to their reputations as evidence in civil suits reveals more about their internal workings.

Ohio Gov. Mike DeWine
Jay LaPrete / AP

Several drug manufacturers targeted in lawsuits over the opioid epidemic have asked a federal judge in Cleveland to sanction Ohio's attorney general and governor-elect, along with two other lawyers, for statements they made in recent television interviews.