Opioid pills Johnson &Johnson, Endo International and some other major drug-makers anddistributors are considering joining the bankruptcy of PurduePharma LLP.

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Major pharma companies that are fending off billions of dollarsin claims from state and local governments over their role in theopioid crisis are considering minimizing theirliability through an obscure legal mechanism known as "third-partyrelease."

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Johnson & Johnson, Endo International and some other majordrug-makers and distributors are considering joining the bankruptcy of Purdue PharmaLLP.

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Purdue, which has been targeted by lawsuits over its signatureproduct, Oxycontin, filed for Chapter 11 bankruptcy last month andhas floated an offer of $10-12 billion to settle all of itslawsuits.

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Related: Opioid manufacturers lose bid to toss 'publicnuisance' claim

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The drug-makers would help fund Purdue's settlement as part ofan agreement that would resolve their liabilities.

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Such a strategy is not unprecedented. Honda agreed last year topay into a settlement fund set up by Takata, an airbag manufacturerthat was forced into bankruptcy due to defective airbags that itprovided to automakers, including Honda. Similarly, Walmart freeditself of liability by paying into a settlement fund related tofaulty gas cans provided to it by Blitz USA, which declaredbankruptcy.

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Not all jurisdictions in the U.S. allow third-party release.They are recognized in the state of New York, where Purdue hasfiled for bankruptcy.

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The amounts that individual drug-makers may pay into Pharma'ssettlement fund remain unclear.

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On Tuesday, Johnson & Johnson announced a $20 millionsettlement with the state of Ohio over opioids. A month earlier, ajudge in Oklahoma ordered the company to pay $572 over the damageinflicted by its products in the state. The company is appealingthat judgment.

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