NEW YORK, Jan. 7 (Reuters) – A U.S. judge on Friday allowed Purdue Pharma to immediately challenge its rejection of legal protections for members of the Sackler family who own the maker of OxyContin, which were a major part of its reorganization plan of bankruptcy.

U.S. District Judge Colleen McMahon’s ruling means Purdue will have another chance to keep intact a $ 4.5 billion opioid litigation settlement at the heart of the company’s plan. She gave Purdue until Jan. 17 to file the appeal with the New York-based 2nd US Court of Appeals.

McMahon overturned a bankruptcy judge’s order approving the deal in December. The settlement provides for so-called non-debtor discharges that protect the Sacklers from future opioid-related lawsuits.

Several states and the US Department of Justice’s bankruptcy watchdog have opposed the releases, saying the Sacklers should not have such protections because they did not file for bankruptcy themselves.

McMahon said in Friday’s ruling that the appeal should be dealt with expeditiously “given the urgency of the opioid crisis and the importance of the matter to the resolution of this case.”

Purdue filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing him and the Sacklers of fueling the opioid epidemic with deceptive marketing.

The Sacklers, who denied wrongdoing, contributed the $ 4.5 billion to the settlement in exchange for the releases. As part of Purdue’s reorganization plan, settlement funds would be directed to opioid reduction programs.

Purdue said in a statement that McMahon’s decision on Friday underscored the need for an early resolution of the case.

“At a time when drug overdose deaths are at record highs, there is a greater need than ever to use Purdue’s settlement funds for opioid reduction programs and overdose relief medication, we hope. therefore move forward as quickly as possible in the appeal process, ”the company said.

A lawyer from several states who opposed the expedited appeal did not immediately respond to a request for comment. Representatives for the Sacklers declined to comment or did not immediately respond to a request.

As the appeal makes its way through the courts, Purdue and the Sacklers are in mediation with states that opposed the releases in a bid to find a new deal that, if reached, would likely render the appeal unnecessary. In progress.

Reporting by Maria Chutchian; Editing by Alexia Garamfalvi, Bill Berkrot and Marguerita Choy

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