Drugmaker Endo reaches $465 million bankruptcy settlement with US

By Thomson Reuters Feb 29, 2024 | 10:29 AM

NEW YORK (Reuters) -Bankrupt drugmaker Endo International will pay up to $465 million to settle the federal government’s law enforcement, tax, and healthcare cost claims, the U.S. Department of Justice said on Thursday.

The settlement removes the largest obstacle to completing Endo’s plans to sell its assets to its lenders in bankruptcy.

Endo has agreed to pay the government $364.9 million over 10 years, plus a contingent payment of up to $100 million, depending on how well its business performs after its exit from bankruptcy. The settlement allows Endo to opt for a lower, one-time payment of $200 million immediately upon its exit from bankruptcy.

Endo, which filed for bankruptcy in August 2022 to address thousands of lawsuits over its alleged role in the U.S. opioid epidemic, has agreed to pay about $600 million in settlements to states and people afflicted by the opioid crisis.

(Reporting by Dietrich Knauth; Editing by Richard Chang)