An appeals court has heard oral arguments from a U.S. military contractor ordered to pay $42 million for contributing to the torture and mistreatment of three former detainees of Iraq’s notorious Abu Ghraib prison two decades ago.

A three-judge federal appellate panel indicated it they might overturn an injunction that allows 23XI Racing and Front Row Motorsports to race as chartered teams in NASCAR this season while the two teams sue the stock car series over alleged antitrust violations.

“We have resolved these cases through a settlement that will take into account the divided decision of the court,” Smithfield Foods Chief Administrative Officer Keira Lombardo said in a statement. North Carolina state law forced U.S. District Judge Earl Britt to cut the punitive damages to $2.5 million. Still, the initial award total worried the hog industry and state agriculture leaders, even causing the North Carolina legislature to pass a law further restricting such litigation. Circuit Judge Stephanie Thacker rejected several arguments from Smithfield's lawyers where they said Britt erred, including whether the issue of punitive damages should even have been put to the jury. Smithfield Foods hasn’t changed the dominant method of hog waste disposal since intensive hog operations multiplied in North Carolina in the 1980s and ’90s.