A federal judge authorized Purdue Pharma LP and its Sackler family owners to appeal a ruling that threw out their $4.5 billion settlement of thousands of lawsuits linked to the bankrupt company’s OxyContin painkiller and its role in the opioid crisis, WSJ Pro Bankruptcy reported. Purdue has until Jan. 17 to apply to the Second U.S. Circuit Court of Appeals for an expedited appeal, U.S. District Judge Colleen McMahon of the Southern District of New York ruled. The Second Circuit can choose whether to accept Purdue’s appeal, which aims to revive a chapter 11 plan to resolve an onslaught of lawsuits alleging that the company and its family owners contributed to opioid addiction. Most U.S. state and local governments backed the settlement with the Sacklers, who received broad releases from opioid-related liability under the bankruptcy plan in exchange. Attorneys general from California, Connecticut and a handful of other states have held out, unsatisfied with the deal terms. Last month, Judge McMahon struck down the chapter 11 plan, saying it went too far by releasing those states’ claims against the Sacklers. On Friday, Judge McMahon allowed Purdue’s appeal to move forward, ruling against the objecting states. The judge acknowledged that allowing the appeal might change states’ negotiating positions with Purdue, but said she didn’t believe it would delay final resolution of the litigation. She said the states were objecting because they were “flush with victory on their appeal and determined to use it to their negotiating advantage.”
