The appeal came after U.S. Bankruptcy Judge Robert Drain in White Plains, New York, granted the Sackler family members who own Purdue Pharma temporary protections from opioid-related litigation until Feb. 1, giving Purdue and the Sacklers time to pursue the appeal.
Purdue seeks to appeal a decision made on December 16, when U.S. District Judge Colleen McMahon overturned Drain's ruling, which released the billionaire Sackler family from liability in civil opioid litigation in exchange for a $4.5 billion payment.
McMahon found the bankruptcy court lacked authority to grant the release in the court's decision on the OxyContin maker's bankruptcy settlement and had asked the appeals court to address whether such releases were legally acceptable.
Purdue claims in its filing on Thursday that the Bankruptcy Code allows for non-consensual third-party release in its case. It also claims that the United States Trustee, which challenged Drain's approval of the plan, does not oppose its ability to appeal to the Second Circuit.
Purdue filed for bankruptcy in September 2019, amid 3,000 lawsuits accusing the company and Sackler family members of contributing to a public health crisis that has killed approximately 500,000 people since 1999.