Bankruptcy

Supreme Court to Deliver Landmark Ruling in Purdue Pharma Bankruptcy, A Potent Closure to an Opioid Saga

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Washington, D.C. — The United States Supreme Court is poised to deliver its decision on the bankruptcy case of Purdue Pharma LP, marking a significant milestone in the ongoing battle against the opioid epidemic, a crisis responsible for over 750,000 deaths between 1999 and 2022. This forthcoming opinion is expected to address numerous legal and ethical issues surrounding one of the most notorious pharmaceutical giants in recent history. Purdue Pharma, widely criticized for its role in the opioid crisis, sought bankruptcy protection to manage the wave of lawsuits alleging it aggressively marketed OxyContin despite knowing … Read more

Opinion: How Trial Lawyers are Undermining the Efficiency of the Bankruptcy System

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New York, New York – The cornerstone of the U.S. bankruptcy process, originally designed to enable fair resolutions in financial collapses, is facing significant setbacks. Critics argue the system is becoming bogged down not by legal complexities, but by an influx of trial lawyers whose intervention sometimes seems to complicate and prolong proceedings. The bankruptcy system in the United States was instituted as a means for debt-ridden entities, whether individuals or corporations, to mitigate and manage their financial liabilities under court supervision. The process ideally allows creditors to recoup a portion of what they are … Read more

Supreme Court Reshapes Future of Bankruptcy Practices with Landmark Ruling on Non-Debtor Releases

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Washington, D.C. – In a landmark decision, the Supreme Court has established a significant precedent regarding the scope of bankruptcy protections, particularly impacting the release of non-debtors without the explicit consent of claimants. The ruling could reshape many aspects of Chapter 11 bankruptcy proceedings and has broad implications for future cases involving mass tort litigation. The majority, a five-justice panel, contended against the minority of four justices, focusing on whether it is proper to grant releases to non-debtors who haven’t sought creditor approval. Historically, bankruptcy discharge—that is, the release from obligation to pay—has been reserved … Read more

Federal Court Denies Johnson & Johnson’s Attempt to Use Bankruptcy for Talc Lawsuit Settlements

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Philadelphia, PA — Johnson & Johnson’s strategy to address a massive volume of talc cancer lawsuits through a subsidiary’s bankruptcy hit a roadblock when a federal appeals court upheld the dismissal of the bankruptcy filing. This ruling was a significant setback for J&J, which had created LTL Management LLC, a subsidiary, specifically to manage and potentially limit financial liabilities from tens of thousands of claims linking their baby powder and other talc-based products to cancer. J&J had previously argued that the financial burden from the lawsuits could lead to insolvency, claiming liabilities could surpass $21 … Read more