Purdue Pharma Can Appeal Rejection Of Bankruptcy Plan

Purdue Pharma Can Appeal Rejection Of Bankruptcy Plan

NEW YORK (Reuters) – A U.S. judge on Friday allowed Purdue Pharma to immediately challenge her rejection of legal protections for Sackler family members who own the OxyContin maker, and which were key to its bankruptcy reorganization plan.

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.

McMahon had reversed a bankruptcy judge’s order approving the deal in December. The settlement provides so-called nondebtor releases that shield the Sacklers against future opioid-related lawsuits.

(Reporting by Maria Chutchian)