U.S. District Judge Colleen McMahon's ruling means Purdue will have another shot at keeping intact a $4.5 billion opioid litigation settlement at the heart of the company's plan. She gave Purdue until Jan. 17 to file the appeal to the New York-based 2nd U.S. Circuit Court of Appeals.
Several states and the U.S. Department of Justice’s bankruptcy watchdog opposed the releases, saying the Sacklers should not be afforded such protections since they did not file for bankruptcy themselves. Purdue filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and the Sacklers of fueling the opioid epidemic through deceptive marketing.
Purdue said in a statement that McMahon's ruling on Friday underscored the need for a speedy resolution to the case.