Opioid Manufacturers Filing for Bankruptcy

 

There are countless opioid epidemic lawsuits that have been filed in Illinois and other states throughout the country.

The cases vary from one to the next. Some are families suing drug companies directly due to a loved one’s overdose, other opioid lawsuits are entire communities or states suing those who are considered at least partially responsible in the epidemic. Many lawsuits have a new outcome – opioid manufacturers are filing for bankruptcy as a result of high court fees and rulings stemming from state, class action, and federal opioid lawsuits.

The common thread in many of these lawsuits is the aggressive or deceptive marketing these opioid manufacturers utilized to peddle their products, often glazing over the dangers of their product. Now as the lawsuits continue, some companies are filing for bankruptcy as a result of the rulings and costs.

Pharmaceutical Company Bankruptcy

Insys Therapeutics is an opioid manufacturer filing for bankruptcy following its federal opioid lawsuit. After agreeing to pay $225 million as a result of criminal and civil cases against the drug company, Insys Therapeutics filed for Chapter 11 bankruptcy protection in early June.1 The bankruptcy protection may help the company escape the financial burden of the total amount they owe, but they will still be on the hook for the $28 million resulting from criminal settlement.

Opioid Lawsuits Are on the Rise

Opioid lawsuits are on the rise, with the notable Sackler Family lawsuit. The lawsuits are aimed at holding the parties responsible for components of the opioid epidemic accountable for their contributions to the growing problem. Some lawsuits are seeking punitive damages, meaning the opioid manufacturers in question will need to pay those harmed by the company’s actions should the suits rule in such a manner. Larger companies, meanwhile, may avoid bankruptcy due to the resources they have to absorb the expenses of these costly verdicts.

Purdue Pharma, producers of Oxycontin, is facing around 2,000 lawsuits. The company may also be considering a bankruptcy filing as a result of the numerous lawsuits it is facing in state and federal courts. 2

Treating Opioid Addiction

While the opioid lawsuits aim to hold manufacturers accountable for their contribution to the opioid epidemic, there is still work that needs to be done when it comes to helping addicts find sobriety. We offer opioid addiction treatment in Illinois, helping people find their sobriety from these dangerous drugs.

Call 888-280-4763 to learn more.


Sources:

  1. NPR - Insys Files For Chapter 11, Days After Landmark Opioid Settlement Of $225 Million
  2. Fox Business - Opioid drugmaker Insys Therapeutics files for bankruptcy
 
Alyssa
Alyssa
Alyssa is Banyan’s Director of Digital Marketing & Technology. After overcoming her own struggles with addiction, she began working in the treatment field in 2012. She graduated from Palm Beach State College in 2016 with additional education in Salesforce University programs. A part of the Banyan team since 2016, Alyssa brings over 5 years of experience in the addiction treatment field.