Purdue Pharma, who makes OxyContin, agreed to a settlement with the state of Oklahoma after they brought a suit alleging the company played a major part in the state’s opioid epidemic. This case is one of several that the company is involved in.

They agreed to pay $270 million to avoid a trial. This is more than the other two settlements the company has reached with other states and may lead to other settlements with other claims that are pending. There are 35 other state court cases pending against Purdue and a consolidated 1,600 suits in federal court brought by cities, counties, Native American tribes and others.

Mike Hunter, the Oklahoma Attorney General, accused Purdue, Johnson & Johnson and Teva Pharmaceutical Industries Ltd. of deceptive marketing practices which played down addiction risks associated with opioids, while overstating their benefits. The companies involved deny wrongdoing and the claims against Johnson & Johnson and Teva are still pending.

Purdue has not filed for Chapter 11 bankruptcy but have explored the option. If they do so only secured creditors like banks may be paid in full. As part of the agreement with Oklahoma, Purdue’s payment to the state will be secured against a possible bankruptcy filing. Almost $100 million of the settlement is planned to fund a new addiction treatment and research center at Oklahoma State University in Tulsa. Other portions of the settlement will go to municipalities and counties to address the costs of the epidemic, some will go to the state for litigation costs and some will go towards medicine for addiction treatment.

“The addiction crisis facing our state and nation is a clear and present danger,” Mr. Hunter said. “Last year alone, out of the more than 3,000 Oklahomans admitted to the hospital for a nonfatal overdose, 80 percent involved a prescription opioid medication. Additionally, nearly 50 percent of Oklahomans who died from a drug overdose in 2018 were attributed to a pharmaceutical drug. Deploying the money from this settlement immediately allows us to decisively treat addiction illness and save lives.”

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