Mike Spector, Tom Hals

(Reuters) -The Purdue Pharma LP family members are close to an agreement that will increase their $4 billion offer for opioid litigation resolution. They have negotiated with states who had opposed to the terms of OxyContin’s bankruptcy reorganization.

Sackler family members and states objecting to terms of Purdue’s bankruptcy reorganization are “close to an agreement in principle” to contribute additional cash beyond the $4.325 billion they had pledged to settle opioid litigation, according to a mediator’s interim report filed on Monday.

The mediation kicked off in January among Sackler family members and several states after a U.S. district judge overturned the original settlement, which was the cornerstone of Purdue’s bankruptcy reorganization plan.

A judge ruled that Sackler relatives were not protected from the opioid lawsuits by their reorganization plan.

A deal involving the Sackler family members and several state attorney generals could end the legal battle that prevented Purdue’s bankruptcy exit and allow for the development of a plan to address the opioid crisis.

Shelley Chapman (ex-U.S. Bankruptcy Judge) said that any further contribution by the Sacklers would only be for opioid reduction. She requested that the talks are extended past Tuesday’s deadline.

Purdue was the manufacturer of OxyContin, a highly addictive opioid painkiller. In 2019 Purdue and the Sacklers were accused of fueling the U.S. epidemic by misleading the public.

Sackler’s family has denied any wrongdoing. Purdue was convicted in November 2020 of three felonies stemming from the handling of OxyContin.