OxyContin Maker Purdue Pharma Facing Bankruptcy? Drug Manufacturer Faces Roughly 2,000 Lawsuits

Purdue Pharm Bankruptcy — Purdue Pharma may be considering bankruptcy as it faces roughly 2,000 lawsuits for allegedly fueling the opioid crisis. Oxycodone pain pills prescribed for a patient with chronic pain lie on display on March 23, 2016 in Norwich, CT. Communities nationwide are struggling with the unprecidented opioid pain pill and heroin addiction epidemic. On March 15, the U.S. Centers for Disease Control (CDC), announced guidelines for doctors to reduce the amount of opioid painkillers prescribed, in an effort to curb the epidemic. The CDC estimates that most new heroin addicts first became hooked on prescription pain medication before graduating to heroin, which is stronger and cheaper. Getty Images/John Moore

With roughly 2,000 lawsuits pending, OxyContin manufacturer Purdue Pharma is considering filing Chapter 11 bankruptcy, Reuters reported. The drug maker has come under fire for allegedly fueling the opioid crisis in the U.S. and may be looking to address the liabilities it is facing.

The growing litigation against Purdue Pharma has accused the company of misleading doctors as well as patients about the risk of long-term use of prescription opioids and their fatality through overdose, Reuters reported.

The company denies the accusations against it, arguing that the U.S. Food and Drug Administration has approved its opioid labeling, which carries a warning about abuse and misuse of the drugs, according to the news outlet.

Filing Chapter 11 could put an end to the lawsuits against Purdue Pharma as it could use a bankruptcy judge to negotiate any potential settlements for the claims against it, NBC News reported.

"As a privately-held company, it has been Purdue Pharma's longstanding policy not to comment on our financial or legal strategy," Purdue said in a statement. "We are, however, committed to ensuring that our business remains strong and sustainable. We have ample liquidity and remain committed to meeting our obligations to the patients who benefit from our medicines, our suppliers and other business partners."

Purdue Pharma is just one of several opioid producers that are being sued for deceptive practices related to drug addiction. The lawsuits have been compiled into one federal case, and are being compared to tobacco litigation that turned a $246 billion settlement, Reuters reported.

Purdue Pharma, along with other drug companies, will stand trial in a televised suit in May that was filed by Mike Hunter, the attorney general in Oklahoma. In the case, Purdue is accused of playing up the benefits of opioids without stating the risks that patients could face through addiction. The pharmaceutical companies are also accused of telling doctors to prescribe higher dosages of the painkillers for a bigger profit, CNBC reported.