Purdue's creditors back bankruptcy plan

Pharmaceutical giant Purdue, the maker of OxyContin, is saying that creditors have voted in favor of its bankruptcy plan.

The move, announced on Tuesday (July 27), would provide billions of dollars to governments that sued the company for its role in the U.S. opioid crisis.

Purdue says more than 95% of the over 120,000 votes submitted backed the plan.

It's aiming to resolve around 3,000 lawsuits brought by American communities.

Purdue and its wealthy owners, the Sackler family, are accused of contributing to the opioid crisis, which has claimed the lives of an estimated 500,000 people since 1999.

Plaintiffs say the company aggressively marketed the painkiller OxyContin while playing down its abuse and overdose risks.

Purdue is based in Stamford, Connecticut. The company and members of the Sackler family have denied the allegations.

Earlier in July, Purdue reached an agreement with several states.

The latest development though sets the stage for it to gain court approval in coming weeks for a bankruptcy plan, which the company values at more than $10 billion.

That value is contingent in part on future donations of overdose reversal and addiction treatment medications the company has under development.

The plan would dissolve the company and shift assets to trusts run on behalf of the plaintiffs.

If approved, it would also include legal releases that shield the Sacklers from future litigation.