OxyContin-maker Purdue Pharma filed for Chapter 11 bankruptcy protection Sunday night amid accusations from state attorneys general that its owners—members of the mega-rich Sackler family—are lowballing opioid victims in a proposed deal to settle around 2,000 lawsuits, mostly from state and local governments.

The bankruptcy filing is part of the proposed deal, which would lead to a company restructuring and a transfer of assets that Purdue says will be valued between $10 billion and $12 billion over time. That includes at least $3 billion from the Sackler family directly.

Purdue is estimated to have made more than $35 billion from OxyContin sales, and the Sacklers have an estimated family fortune of $13 billion, mostly siphoned from Purdue’s OxyContin profits.

Thousands of municipal governments and nearly two dozen states have tentatively agreed to the deal. But around two dozen other states involved are opposed, saying that the deal doesn’t go far enough to hold the Sacklers and Purdue accountable. The divide is largely along party lines, with Republican-led states agreeing and Democratic-led states holding out, NBC News pointed out. One of the most vocal states among the opposition is New York.

On Friday, New York attorney general’s office announced it had tracked wire transfers made by the Sacklers totaling at least $1 billion, suggesting that the family has tried to shield its OxyContin profits from litigation by obscuring their location and moving some offshore. The information came from just one of 33 financial institutions and investment advisors the state subpoenaed.

“While the Sacklers continue to lowball victims and skirt a responsible settlement, we refuse to allow the family to misuse the courts in an effort to shield their financial misconduct,” New York Attorney General Letitia James said in a statement. “Records from one financial institution alone have shown approximately $1 billion in wire transfers between the Sacklers, entities they control, and different financial institutions, including those that have funneled funds into Swiss bank accounts,” she added, according to the New York Times.

Holdouts

One of the transactions routed through Swiss bank accounts was a 2009 transfer of $64 million from an unknown Purdue-owned trust to Mortimer D.A. Sackler. The money moved through the Swiss account to one in the Bailiwick of Guernsey, in the Channel Islands, and then to Mortimer Sackler, court filings said. Other transactions shuttled millions of dollars from Mortimer Sackler to two real estate entities in Manhattan and Long Island.

A statement from a firm representing Mortimer Sackler read, "There is nothing newsworthy about these decade-old transfers, which were perfectly legal and appropriate in every respect. This is a cynical attempt by a hostile AG's office to generate defamatory headlines to try to torpedo a mutually beneficial settlement that is supported by so many other states and would result in billions of dollars going to communities and individuals across the country that need help."

But New York and other states are holding out. Illinois Attorney General Kwame Raoul said in a statement that his office “is prepared to hold the Sackers accountable, regardless of whether or not Purdue declares bankruptcy,” in a statement last week.

Connecticut Attorney General William Tong likewise added that his office also rejects the settlement deal, writing on Twitter:

The scope and scale of the pain, death and destruction that Purdue and the Sacklers have caused far exceeds anything that has been offered thus far. CT's focus is on the victims and their families, and holding Purdue and the Sacklers accountable for the crisis they have caused.

The fate of the states’ lawsuits and the settlement are now in the hands of federal bankruptcy judge Robert Drain in White Plains, New York, according to the Associated Press.

In a statement, the Sackler family said: