Bankruptcy

Supreme Court Decision on Purdue Case Raises Barriers for Settling Mass Torts in Bankruptcy

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Washington – A recent U.S. Supreme Court decision has significantly influenced the landscape of bankruptcy law, particularly affecting how mass torts, such as widespread injury claims against companies, can be resolved when the accused entities file for bankruptcy. Central to this decision was the case involving Purdue Pharma, the maker of OxyContin, which has been at the heart of numerous lawsuits due to allegations of fueling the opioid crisis in America. The court’s ruling has curtailed a common legal strategy often employed by companies in bankruptcy: settling mass tort litigation through bankruptcy protection plans that … Read more

U.S. Supreme Court Decision on Purdue Case Heightens Challenges for Mass Litigation Resolutions in Bankruptcy

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Washington, D.C. — A landmark decision by the U.S. Supreme Court has fundamentally changed the landscape for resolving mass litigation within the bankruptcy framework. This ruling significantly impacts the ability of companies, like opioid giant Purdue Pharma, to settle numerous lawsuits by filing for bankruptcy. Traditionally, bankruptcy has been used as a tool by corporations to manage and halt litigation, particularly when faced with the potential devastation of massive lawsuit payouts. Bankruptcy filings allow these companies to consolidate lawsuits in one federal court and propose global settlements. However, the Supreme Court’s decision has narrowed the … Read more

Supreme Court Delivers Landmark Ruling in Purdue Pharma Bankruptcy, Shaping Future of Mass Tort Cases

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WASHINGTON — A recent Supreme Court decision has resoundingly reshaped the landscape of bankruptcy law, particularly in how it pertains to mass tort litigations, exemplified by the high-profile Purdue Pharma bankruptcy case. At the heart of this judicial review was a debated proposal to exempt the Sackler family — owners of Purdue Pharma and makers of OxyContin — from future civil lawsuits while committing them to pay $6 billion into a settlement fund for victims of the opioid crisis. Purdue Pharma entered into bankruptcy in 2019 after facing a slew of lawsuits that attributed much … Read more

Supreme Court Limits Bankruptcy Shield, Forcing Companies to Reassess Settlement Strategies in Mass Tort Cases

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Washington — The recent U.S. Supreme Court ruling has significantly impacted how bankruptcy can be employed, particularly in mass tort litigations involving organizations like Purdue Pharma, the makers of OxyContin. The court has curtailed the scope of bankruptcy courts, specifically rescinding their authority to dismiss legal claims against non-debtors without the explicit consent of the involved parties. Historically, bankruptcy proceedings have provided a robust mechanism for organizations to manage and settle widespread legal challenges, including cases related to sexual abuse and consumer products linked to health issues. Such procedures allowed for the automatic halting of … Read more