Opioid maker Purdue Pharma has filed for Chapter 11 bankruptcy protection amid a $10 billion settlement agreement over some 2,000 U.S. opioid lawsuits. Through the bankruptcy protection, Purdue will restructure its company while coming to a settlement agreement for the litigation against it.

The opioid settlement agreement that Purdue has agreed to places all assets of the company in a trust or other entity for the benefit of the claimants of the lawsuit as well as the American people. This will be part of a new company that is governed by a new board of directors that is selected by the claimants in the suits.

The new company will also provide tens of millions of opioid overdose reversal and treatment medications at no cost or low cost, including nalmefene and naloxone. The company is also restricted on the marketing, sale, and promotion of opioids with the Sackler families also contributing a minimum of $3 billion to the opioid crisis.

“This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public,” Steve Miller, chairman of Purdue’s board of directors said.

“This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis. We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible,” he added.

Going forward, Purdue said it will use its knowledge and experience to develop medications for the benefit of the American public.

The Stamford, Connecticut offices of Purdue Pharma, whose Oxycontin painkiller is is blamed for fueling much of the US opioid addiction crisis The Stamford, Connecticut offices of Purdue Pharma, whose Oxycontin painkiller is is blamed for fueling much of the US opioid addiction crisis Photo: GETTY IMAGES NORTH AMERICA / Drew Angerer