Purdue Pharma has the fitting to attraction the rejection of the chapter plan | Enterprise insurance – business insurance
(Reuters) – A US judge on Friday allowed Purdue Pharma to immediately challenge its denial of legal protection for Sackler family members who own the OxyContin maker and were a key part of its bankruptcy reorganization plan.
U.S. District Judge Colleen McMahon's ruling means Purdue has another chance to maintain a $ 4.5 billion opioid litigation at the heart of the business plan. She gave Purdue until January 17 to appeal to the US Second Court of Appeals in New York.
Judge McMahon overturned a bankruptcy judge's decision in December approving the deal. The settlement provides for so-called non-debtor releases that protect the Sacklers from future opioid-related lawsuits.
Purdue filed for bankruptcy in 2019 amid thousands of lawsuits accusing it and the Sacklers of fueling the opioid epidemic through fraudulent marketing.
The Sacklers, who denied wrongdoing, contributed $ 4.5 billion to the settlement in exchange for the releases. As part of the Purdue reorganization plan, the settlement funds would go to opioid control programs.