IN RE PURDUE PHARMA L.P.

NOS. 22-110-bk (L), 22-113-bk, 22-115-bk, 22-116-bk, 22-117-bk, 22-119-bk, 22-121-bk, 22-299-bk, 22-203-bk.

69 F.4th 45 (2023)

IN RE: PURDUE PHARMA L.P., Purdue Pharma Inc, Purdue Transdermal Technologies L.P., Purdue Pharma Manufacturing L.P., Purdue Pharmaceuticals L.P., Imbrium Therapeutics L.P., Adlon Therapeutics L.P., Greenfield BioVentures L.P., Seven Seas Hill Corp., Ophir Green Corp., Purdue Pharma of Puerto Rico, Avrio Health L.P., Purdue Pharmaceutical Products L.P., Purdue Neuroscience Company, Nayatt Cove Lifescience Inc., Button Land L.P., Rhodes Associates L.P., Paul Land Inc., Quidnick Land L.P., Rhodes Pharmaceuticals L.P., Rhodes Technologies, UDF LP, SVC Pharma LP, SVC Pharma Inc., Debtors. Purdue Pharma, L. P., Purdue Pharma Inc, Purdue Transdermal Technologies L.P., Purdue Pharma Manufacturing L.P., Purdue Pharmaceuticals L.P., Imbrium Therapeutics L.P., Adlon Therapeutics L.P., Greenfield BioVentures L.P., Seven Seas Hill Corp., Ophir Green Corp., Purdue Pharma of Puerto Rico, Avrio Health L.P., Purdue Pharmaceutical Products L.P., Purdue Neuroscience Company, Nayatt Cove Lifescience Inc., Button Land L.P., Rhodes Associates L.P., Paul Land Inc., Quidnick Land L.P., Rhodes Pharmaceuticals L.P., Rhodes Technologies, UDF LP, SVC Pharma LP, SVC Pharma Inc., Debtors-Appellants-Cross-Appellees, The Official Committee of Unsecured Creditors of Purdue Pharma L.P., et al., Ad Hoc Committee of Governmental and Other Contingent Litigation Claimants, the Raymond Sackler Family, Ad Hoc Group of Individual Victims of Purdue Pharma, L.P., Multi-state Governmental Entities Group, Mortimer-Side Initial Covered Sackler Persons, Appellants-Cross-Appellees, v. The City of Grande Prairie, as Representative Plaintiff for a Class Consisting of All Canadian Municipalities, the Cities of Brantford, Grand Prairie, Lethbridge, and Wetaskiwin, the Peter Ballantyne Cree Nation, on Behalf of All Canadian First Nations and Metis People, the Peter Ballantyne Cree Nation on Behalf Itself, and the Lac La Ronge Indian Band, Appellees-Cross Appellants, The State of Washington, State of Maryland, District of Columbia, U.S. Trustee William K. Harrington, State of Connecticut, Ronald Bass, State of California, People of the State of California, By and Through Attorney General Rob Bonta, State of Oregon, State of Delaware, By and Through Attorney General Jennings, State of Rhode Island, State of Vermont, Ellen Isaacs, on Behalf of Patrick Ryan Wroblewski, Maria Ecke, Andrew Ecke, Richard Ecke, Appellees.

United States Court of Appeals, Second Circuit.

August TERM 2021.

Decided: May 30, 2023.


Attorney(s) appearing for the Case

Marshall S. Huebner , ( Benjamin S. Kaminetzky , Eli J. Vonnegut , James I. McClammy , Marc J. Tobak , Christopher S. Robertson , Gerard X. McCarthy , and Garrett L. Cardillo , on the brief), Davis Polk & Wardwell LLP, New York, New York; Gregory G. Garre , Charles S. Dameron , Eric J. Konopka , and Joshua J. Craddock , Latham & Watkins LLP, Washington, D.C. (on the brief), for Debtors-Appellants-Cross-Appellees Purdue Pharma L.P., Purdue Pharma Inc., Purdue Transdermal Technologies L.P., Purdue Pharma Manufacturing L.P., Purdue Pharmaceuticals L.P., Imbrium Therapeutics L.P., Adlon Therapeutics L.P., Greenfield BioVentures L.P., Seven Seas Hill Corp., Ophir Green Corp., Purdue Pharma of Puerto Rico, Avrio Health L.P., Purdue Pharmaceutical Products L.P., Purdue Neuroscience Company, Nayatt Cove Lifescience Inc., Button Land L.P., Rhodes Associates L.P., Paul Land Inc., Quidnick Land L.P., Rhodes Pharmaceuticals L.P., Rhodes Technologies, UDF LP, SVC Pharma LP, and SVC Pharma Inc.

Mitchell P. Hurley ( Erik Y. Preis and Sara L. Brauner , on the brief), Akin Gump Strauss Hauer & Feld LLP, New York, New York; Z.W. Julius Chen , Akin Gump Strauss Hauer & Feld LLP, Washington, D.C. (on the brief), for Appellant-Cross-Appellee The Official Committee of Unsecured Creditors of Purdue Pharma L.P., et al.

Roy T. Englert, Jr. , ( Lawrence S. Robbins , on the brief), Robbins, Russell, Englert, Orseck & Untereiner LLP, Washington, D.C.; Kenneth H. Eckstein , Rachael Ringer , and David E. Blabey Jr. , Kramer Levin Naftalis & Frankel LLP, New York, New York (on the brief); David J. Molton , Brown Rudnick LLP, New York, New York (on the brief); Richard J. Leveridge , Richard D. Shore , and Daniel I. Wolf , Gilbert LLP, Washington, D.C. (on the brief); Melanie L. Cyganowski , Otterbourg P.C., New York, New York (on the brief), for Appellant-Cross-Appellee Ad Hoc Committee of Governmental & Other Contingent Litigation Claimants.

J. Christopher Shore ( Michele J. Meises and Alice Tsier , on the brief), White & Case LLP, New York, New York; Edward E. Neiger , ASK LLP, New York, New York (on the brief), for Appellant-Cross-Appellee Ad Hoc Group of Individual Victims of Purdue Pharma, L.P.

Jeffrey A. Liesemer ( Kevin C. Maclay , Todd E. Phillips , and Lucas H. Self , on the brief), Caplin & Drysdale, Chartered, Washington, D.C., for Appellant-Cross-Appellee Multi-State Governmental Entities Group.

Maura Kathleen Monaghan ( Jasmine Ball , on the brief), Debevoise & Plimpton LLP, New York, New York, for Appellant-Cross-Appellee Mortimer-Side Initial Covered Sackler Persons.

Gregory P. Joseph , Mara Leventhal , Joseph Hage Aaronson LLC, New York, New York; Gerard Uzzi , Alexander B. Lees , Milbank LLP, New York, New York, for Appellant-Cross-Appellee The Raymond Sackler Family.

J. Carl Cecere , Cecere PC, Dallas, Texas; Allen J. Underwood, II , Lite Depalma Greenberg & Afanador, LLC, Newark, New Jersey (on the brief), for Appellees-Cross-Appellants The City of Grand Prairie, as Representative Plaintiff for a Class Consisting of All Canadian Municipalities, The Cities of Brantford, Grand Prairie, Lethbridge, and Wetaskiwin, The Peter Ballantyne Cree Nation, on behalf of All Canadian First Nations and Metis People, the Peter Ballantyne Cree Nation, on behalf of itself, and the Lac La Ronge Indian Band.

Michael Shih , Attorney, Appellate Staff Civil Division, ( Michael S. Raab and Sean R. Janda , Attorneys, Appellate Staff Civil Division, on the brief), for Sarah E. Harrington , Deputy Assistant Attorney General, ( Beth A. Levene and Sumi K. Sakata , Trial Attorneys, for P. Matthew Sutko , Associate General Counsel, for Ramona D. Elliot , Deputy Director/General Counsel, Executive Office for United States Trustees, on the brief), United States Department of Justice, Washington, D.C.; Lawrence H. Fogelman , Peter Aronoff , Danielle J. Levine , Assistant United States Attorneys, for Damian Williams , United States Attorney for the Southern District of New York, New York, New York (on the brief), for Appellee U.S. Trustee William K. Harrington.

Ronald Bass, pro se, North Plainfield, New Jersey.

Ellen Isaacs, pro se, on behalf of Patrick Ryan Wroblewski, and all similarly situated persons, Floyd, Virginia.

Maria Ecke, Andrew Ecke, Richard Ecke, pro se, West Simsbury, Connecticut.

Gregg M. Galardi , Ropes & Gray LLP, New York, New York; Douglas Hallward-Driemeier , Ropes & Gray LLP, Washington, D.C.; Andrew G. Devore , Ropes & Gray LLP, Boston, Massachusetts; Ryan Preston Dahl , Ropes & Gray LLP, Chicago, Illinois, for Amici Curiae Law Professors in support of Appellants.

Paul H. Zumbro , George E. Zobitz , Lauren A. Moskowitz , Cravath, Swaine & Moore LLP, New York, New York, for Amicus Curiae The Association of the Bar of the City of New York.

Tara S. Morrissey , U.S. Chamber Litigation Center, Washington, D.C., for the Chamber of Commerce of the United States of America; David H. Thompson , Brian W. Barnes , John W. Tienken , Cooper & Kirk, PLLC, Washington, D.C., for Amici Curiae the Chamber of Commerce of the United States of America, the American Tort Reform Association, and Product Liability Advisory Council, Inc.

Andrew K. Glenn , Jed I. Bergman , Shai Schmidt , Glenn Agre Bergman & Fuentes LLP, New York, New York, for Amici Curiae Bankruptcy Law Professors Ralph Brubaker, George W. Kuney, and Bruce A. Markell.

Joshua L. Seifert , Joshua. L. Seifert PLLC, New York, New York, for Amici Curiae Law Professors in Support of Appellees Regarding the "Abuse" Standard.

Robert J. Keach , Bernstein Shur Sawyer & Nelson, P.A., Portland, Maine; Albert Togut , Togut, Segal & Segal LLP, New York, New York, for Amici Curiae Commissioners of the American Bankruptcy Institute's Commission to Study the Reform of Chapter 11.

Daniel R. Walfish , Walfish & Fissell PLLC, for Amicus Curiae Professor Adam J. Levitin.

Harold D. Israel , Levenfeld Pearlstein, LLC, Chicago, Illinois; Scott R. Bickford , Martzell, Bickford & Centola, New Orleans, Louisiana, for Amicus Curiae the Ad Hoc Committee of NAS Children.

Before: Newman, Wesley, and Lee, Circuit Judges.


Bankruptcy is inherently a creature of competing interests, compromises, and less-than-perfect outcomes. Because of these defining characteristics, total satisfaction of all that is owed—whether in money or in justice—rarely occurs. When a bankruptcy is the result of mass tort litigation against the debtor...

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