Bloomberg Law
Jan. 28, 2022, 3:32 PM

Purdue Pharma Bankruptcy Plan Appeal Goes to Second Circuit

Daniel Gill
Daniel Gill
Reporter

Purdue Pharma LP’s Chapter 11 plan protecting Sackler family members from opioid-related litigation will get review before a federal appeals court.

The U.S. Court of Appeals for the Second Circuit Thursday agreed to hear the OxyContin manufacturer’s request on an expedited basis.

Purdue is seeking to overturn a December ruling from Judge Colleen McMahon of the U.S. District Court for the Southern District of New York that reversed a bankruptcy court order approving Purdue’s reorganization plan.

McMahon found that liability releases granted to non-bankrupt parties—including members of the Sackler family that owned and controlled the company—weren’t authorized under the law. ...