Bankruptcy

The Texas Two-Step Bankruptcy Tactic Fails to Provide Desired Relief, Ignites Controversy: A Closer Look

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Austin, Texas – The controversial “Texas Two-Step” bankruptcy cases, which involved corporations using the tactic of restructuring and subsequently filing for bankruptcy to delay mass tort liability, have proven to be unsuccessful. Companies such as Best Wall, DBMP, Aldrich Pump/Murray Boiler, and most recently, LTL, have all attempted this strategy without success. These failed attempts have garnered significant attention, with critics including the U.S. Senate expressing strong opposition. The concept of the Texas Two-Step has muddled the discussion surrounding the legitimate interests of both public companies seeking “finality” in resolving claims and plaintiffs who want … Read more

Purdue Pharma Bankruptcy Case: Supreme Court to Decide on Nondebtor Releases, Shaping Future of Chapter 11 Practice

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Indianapolis, Indiana: The US Supreme Court is set to hear arguments in December in a case involving Purdue Pharma, the pharmaceutical company accused of contributing to the opioid epidemic. The central issue at stake is whether the Bankruptcy Code permits a Chapter 11 plan to provide releases to nondebtor third parties without their consent. This case has garnered significant attention from the public and bankruptcy professionals alike, as it has the potential to bring about significant changes in Chapter 11 bankruptcy practice. Purdue Pharma and its affiliates filed for Chapter 11 bankruptcy in the Bankruptcy … Read more

Exploring the Rise of Bankruptcy Court in Public Harms Litigation: Case in Focus – Harrington v. Purdue Pharma

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Washington, DC – The Supreme Court will hear oral arguments on Monday in a case that highlights the increasing use of bankruptcy court by corporations involved in public harms litigation. The case in question is Purdue Pharma’s bankruptcy deal, which seeks to shield the company’s owners, the Sackler family, from civil liability in exchange for a $6 billion contribution to a settlement. This raises important questions about the role of bankruptcy court in addressing public health crises and whether bypassing the traditional civil litigation process is an effective solution. Bankruptcy court has become an attractive … Read more

Bankruptcy Lawyer Reveals Surprising Reason Why You Shouldn’t Borrow Money from Your Own Bank

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Ohio-based bankruptcy attorney Adrienne Hines has shared advice on dealing with debts through a TikTok video. Hines advises against borrowing money from the bank where one holds their account. She explains that banks have access to a person’s financial activity and know everything about them. If a person defaults on a loan, the bank can quickly come after them since they have all the necessary information. Additionally, Hines highlights the issue of setoff, where banks can take money directly from a person’s account in certain situations. According to Nolo, there are two main types of … Read more