Under the proposal, Purdue will file for bankruptcy, hand itself over to a trust and sell its overseas drugmaker.

The deal resolves only two cases set for trial in October and leaves intact lawsuits filed by more than 2,000 local governments.

Mylan and Teva Pharmaceuticals have been at the center of probes into allegations that generic-drug companies coordinated with one another on setting prices.

The merger allows Pfizer to move an obsolete business off the balance sheet while still generating multimillion-dollar cashflows.

Insys is the first drugmaker to seek bankruptcy protection from its creditors as a result of legal action related to the U.S. opioid epidemic.

The verdict signals that the public is willing to hold pharmaceutical executives accountable for the U.S. crisis.

Officials from seven pharmaceutical giants are scheduled to appear before the Senate Finance Committee to discuss soaring drug prices.

The trial of Insys Therapeutics Inc. CEO John Kapoor could serve as a test-drive for how jurors weigh claims of industry wrongdoing.