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UPDATE: Purdue Pharma files for bankruptcy after proposed deal on opioid cases

Purdue Pharma LP filed for bankruptcy protection after it reached a deal with state officials to settle its alleged involvement in the U.S. opioid epidemic.

The Chapter 11 bankruptcy filing is part of a framework, agreed in principle, to settle litigation with 24 state attorneys general, officials from five U.S. territories and other plaintiffs alleging the company's marketing practices contributed to the painkiller addiction crisis in the U.S.

Purdue has denied the accusations.

The Stamford, Conn.-based maker of painkiller OxyContin said it will provide more than $10 billion in funding for life-saving opioid overdose reversal medications such as nalmefene and naloxone,which will be provided by a newly established entity called NewCo at zero to low cost, to help address the crisis.

NewCo will be bound permanently by injunctive relief, including marketing restrictions on the sale and promotion of opioids.

Additionally,the company's founders, the Sackler family, would give up control of the privately held company, contributing all of their assets to a trust or other entity established for the benefit of Americans who were affected by the opioid epidemic.

The Sackler family will also contribute $3 billion of their personal funds toward the settlement, with the potential to further provide cash from the sales of their pharmaceutical businesses outside of the U.S.