Bankruptcies

Supreme Court Decision Reshapes Future of Mass Tort Bankruptcies, Limits Legal Shields for Non-Debtors

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NEW YORK — The Uamsung the decision by the Supreme Court could signal a pivot in the way corporations may use bankruptcy proceedings to settle massive lawsuits. This follows a recent decision which invalidated a key part of the agreement that would have resolved multidistrict litigation against Purdue Pharma, the manufacturer of OxyContin. The court ruled against the ability of bankruptcy courts to absolve claims directed at third parties who have not themselves declared bankruptcy—a standard practice that had been utilized by firms facing sizable litigation burdens. For years, bankruptcy courts provided a setting allowing … Read more

The Supreme Court to Decide on Insurer Participation in Bankruptcies, Potentially Impacting the Surge in Mass Tort Lawsuits

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New York, NY – A case coming before the U.S. Supreme Court this term may have far-reaching consequences for the nation’s mass tort lawsuits. The issue at hand is whether insurers should be allowed to participate in bankruptcies where tort claims are involved. Currently, debtors and creditors have the right to participate, but insurers are often left out. The question is whether insurers, who play a role in defending tort cases, should be considered “party-in-interest” and have a say in the bankruptcy process. The Supreme Court will weigh in on this issue in the case … Read more

2024 Legal Landscape: The Future of ‘Creative’ Mass Tort Bankruptcies Hangs in the Balance

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NEW YORK CITY – The potential impact of “creative” mass tort bankruptcies in 2024 is being closely observed by legal experts. These bankruptcies have the potential to make or break the outcomes of major liability cases, and their effects are expected to be significant. Mass tort bankruptcies refer to situations where companies facing multiple lawsuits for liability-related issues seek bankruptcy protection as a strategic move to manage and potentially limit their legal liabilities. This approach allows them to consolidate all litigation in one legal proceeding, negotiate settlements, and establish trust funds for claimants. Legal professionals … Read more