Bankruptcy

Otterbourg P.C. Launches Specialized Mass Tort Bankruptcy Practice Group to Provide Comprehensive Legal Solutions

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New York, NY – In a significant development, Otterbourg P.C., a prominent law firm based in New York, has announced the official launch of its Mass Tort Bankruptcy Practice Group. Led by highly experienced experts in the field, Sunni P. Beville and Adam C. Silverstein, along with the guidance of retired Chief Judge Melanie Cyganowski, the group aims to provide comprehensive legal services to creditors and fiduciaries involved in mass tort bankruptcy cases. With a strong foundation in mass tort bankruptcy, Otterbourg has been involved in pivotal cases such as In re LTL Management LLC … Read more

Supreme Court to Decide on Unconventional Bankruptcy Maneuver in Public Harms Litigation

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Washington, D.C. – In an era of unprecedented civil procedure tactics, corporations facing public harm litigation are increasingly turning to bankruptcy court as an alternative to traditional civil litigation. From the Catholic Diocese and Boy Scouts in abuse cases to Johnson & Johnson’s talc litigation, corporations are leveraging bankruptcy’s special powers to address pending claims that traditional tort litigation has failed to resolve efficiently. The Supreme Court is set to hear Purdue Pharma’s bankruptcy deal, which raises questions about the effectiveness of using bankruptcy court in resolving public health crises and whether it circumvents the … Read more

Court of Appeals Ruling Sets Precedent, Limiting Use of Bankruptcy for Litigation Shielding

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Philadelphia, PA – The Third Circuit Court of Appeals handed down a decision today that could significantly impact future bankruptcy filings. The court ordered the dismissal of the Chapter 11 bankruptcy case filed by LTL Management LLC, an affiliate of Johnson & Johnson. LTL had filed for bankruptcy after completing a divisional merger, which left it with the responsibility of managing Johnson & Johnson’s talc liabilities. They sought bankruptcy protection along with an injunction to shield Johnson & Johnson and its other affiliates from ongoing talc litigation. However, an Official Committee of Talc Claimants and … Read more

Third Circuit Court of Appeals Dismisses Johnson & Johnson Affiliate’s Chapter 11 Bankruptcy Case, Highlights Impact on Future Filings

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Philadelphia, PA – The Third Circuit Court of Appeals issued a landmark ruling today, dismissing a Chapter 11 bankruptcy case filed by Johnson & Johnson affiliate LTL Management LLC. This decision is expected to have far-reaching implications for future bankruptcy filings of a similar nature. The bankruptcy case stemmed from a multi-step divisional merger conducted under Texas law. Following the merger, LTL became responsible for J&J’s talc liabilities, but did not possess any operating assets. In October 2021, LTL filed for Chapter 11 bankruptcy and sought an injunction from the bankruptcy court to protect J&J … Read more