Editor's note: This story was updated to note that Endo's criminal and civil opioid settlement payments will be satisfied by the bankruptcy resolution, according to an Endo spokesperson.
As Endo looks to emerge from bankruptcy, the company has agreed to fork over up to $464.9 million to the federal government, which had been investigating its marketing of opioid painkiller Opana ER.
On Thursday, the U.S. Department of Justice (DOJ) said Endo has reached settlements in civil and criminal cases over its prior marketing of Opana ER. In addition, Endo inked a bankruptcy settlement worth up to $464.9 million, which essentially supersedes the civil and criminal deals for financial purposes.
In the bankruptcy case, Endo agreed to pay $364.9 million over 10 years, plus up to $100 million depending on its performance after emerging from bankruptcy. Alternatively, Endo could resolve the bankruptcy case for $200 million upfront, plus the contingent payment worth up to $100 million depending on its future performance.
The bankruptcy case stems from the U.S. government's "monetary claims" in the bankrupt Endo, according to a separate DOJ release. Among those claims are monetary payments stemming from Endo's new federal opioid deals.
In the criminal settlement, Endo agreed to plead guilty to a misdemeanor charge of violating the Federal Food, Drug and Cosmetic Act with its prior opioid marketing. The deal proposes a whopping $1.086 billion criminal fine and a $450 million criminal forfeiture, according to the DOJ.
In the civil case, a proposed payment of $475.6 million would resolve Endo's potential liabilities under the False Claims Act, the DOJ said. In its own release, Endo noted that the civil deal does not include an admission of liability.
Endo stopped selling Opana ER in 2017, the company noted.
While the DOJ touted the federal government's civil and criminal deals, the financial figures from those agreements are not actually relevant. That's because the "the criminal and civil fines are essentially claims that are being satisfied by the settlement payments" in Endo's bankruptcy case, according to a company spokesperson.
Since Endo's bankruptcy filing in August 2022, the company has been undergoing a restructuring in the U.S. Bankruptcy Court in the Southern District of New York. That court must sign off on all of the deals, the DOJ said.
Under Endo's restructuring plan, the company aims to sell itself to certain lenders. A court hearing to consider the proposal is scheduled for March 19.
The bankruptcy case with the government is Endo's largest hurdle to completing its planned restructuring, Reuters reports.