Colleen McMahon of the U.S. District Court for the Southern District of New York overturned a sweeping settlement against Purdue Pharma over its role in the opioid crisis.
Purdue’s Oxycontin (oxycodone) is among the most widely used opioids.
In September, Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, New York, authorized a Chapter 11 bankruptcy settlement against the company. However, several states involved in the suit vowed to appeal the decision.
McMahon argued that the agreement should not have shielded the Sackler family that owned Purdue Pharma from civil liability for opioid-related lawsuits.
The Sacklers had sought immunity from opioid claims as part of the $4.5 billion agreement.
In a 2007 plea agreement with the U.S., Purdue Pharma acknowledged that it had marketed OxyContin inappropriately and submitted false claims to the federal government related to the drug.
McMahon’s ruling will likely mean that the…