A Purdue bankruptcy would make opioids cases even messier

State and local governments have sought billions of dollars from Purdue Pharma as a way to hold the company and the family that owns it accountable for the nation's opioid epidemic, a potential payout that is now clouded in uncertainty after state attorneys general said settlement talks had broken down.

The attorneys general directly involved in the negotiations with the maker of OxyContin and the Sackler family said they anticipated Purdue filing soon for bankruptcy protection.

"It seems that there will be little money for plaintiffs, if Purdue takes bankruptcy and the Sacklers are not kicking in any money for settlement," said Carl Tobias, a professor at the University of Richmond School of Law.

Nearly every state and about 2,000 local governments have sued companies in the drug industry over the toll of opioids, which have been linked to more than 400,000 deaths in the U.S. over the last two decades. The suits cast Stamford, Connecticut-based Purdue as a particular villain, saying the company's marketing of its drugs downplayed addiction risks and led to more widespread opioid prescribing, even though only a sliver of the opioid painkillers sold in the U.S. were its products.

On Saturday, two state attorneys general leading settlement negotiations with the company — Tennessee Republican Herbert Slatery and North Carolina Democrat Josh Stein — sent an email to their colleagues saying talks were at an impasse and that they "expect Purdue to file for bankruptcy protection imminently."

A Purdue spokeswoman and a representative of the family declined to comment on the email, which was obtained by The Associated Press.

Purdue has said for months that it wants to reach a deal that would settle all state and local government claims against it, but it also has threatened to file for bankruptcy protection. Bankruptcy...