Source: OxyContin maker seeks to resolve all lawsuits

FILE - This Feb. 19, 2013 file photo shows OxyContin pills arranged for a photo at a pharmacy in Montpelier, Vt. State attorneys general and lawyers representing local governments said Tuesday, Aug. 27, 2019, they are in active negotiations with Purdue Pharma, maker of the prescription painkiller OxyContin, as they attempt to reach a landmark settlement over the nation's opioid crisis. (AP Photo/Toby Talbot, File)


COLUMBUS, Ohio (AP) — A settlement being pursued by the maker of OxyContin aims to resolve all claims against the company filed in both state and federal court.

The proposal also provides a formula for dividing settlement money among states and local governments.

A person familiar with the talks but not authorized to discuss them publicly tells The Associated Press the proposal is being floated by lawyers for Stamford, Connecticut-based Purdue Pharma and the controlling Sackler family. Purdue would enter a structured bankruptcy that would resolve all claims.

They are negotiating with several state attorneys general and a lawyer representing local governments as part of a massive federal litigation in Cleveland.

The settlement, if reached, would apply to the nearly 2,000 lawsuits in federal court and hundreds of other local government and state lawsuits.