Reed Smith LLP
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(Reuters) – Purdue Pharma has defeated a request to pause the implementation of its reorganization plan that gives authorized protections to the Sackler relations who owned it.
U.S. District Judge Colleen McMahon in Manhattan issued a short ruling on Wednesday night denying with out prejudice a movement from the Division of Justice’s chapter watchdog, the U.S. Trustee, to keep a chapter judge’s September order approving Purdue’s plan and underlying opioid litigation settlement whereas the appeals course of is taking part in out.
Nevertheless, McMahon stated her ruling is conditioned upon an settlement from the OxyContin maker that it’s going to not try to argue that appeals of the order are “equitably moot,” or successfully irrelevant, down the street.
Purdue lawyer Marshall Huebner of Davis Polk & Wardwell indicated throughout a listening to on Tuesday that his group can be keen to make that stipulation.
The U.S. Trustee and a few states have appealed the order approving the plan, difficult the protections towards future opioid litigation that it affords the Sacklers, who didn’t file for chapter.
The U.S. Trustee has made the identical request to keep the plan’s implementation to U.S. Chapter Judge Robert Drain, who accredited the plan in September. A listening to on that request is ready for Nov. 9.
The case is In re Purdue Pharma LP, U.S. District Courtroom, Southern District of New York, No. 21-07966.
For Purdue: Marshall Huebner, Benjamin Kaminetzky, Timothy Graulich, Eli Vonnegut and James McClammy of Davis Polk & Wardwell; and Paul Breene, Ann Kramer, Anthony Crawford and Lisa Szymanski of Reed Smith
For the U.S. Trustee: Linda Riffkin, Matt Sutko of the U.S. Trustee; and Beth Levene, Sumi Sakata, Paul Schwartzberg and Benjamin Higgins of the Division of Justice
Purdue Pharma judge to rule on bid to pause opioid deal Wednesday
Judge will approve Purdue Pharma chapter plan that shields Sacklers
Maria Chutchian studies on company bankruptcies and restructurings. She might be reached at [email protected]nreuters.com.