Supreme Court’s Purdue Ruling Shapes New Settlement Strategies in Mass Tort Bankruptcy Cases
New York, NY — The recent ruling by the U.S. Supreme Court regarding bankruptcy claims has significant implications for how nondebtors can settle disputes related to a debtor’s bankruptcy estate. Following the court’s decision in the Purdue Pharma case, third-party claimants cannot have resolutions imposed on them without their explicit consent, even if those claims are closely linked to the debtor’s bankruptcy. Two notable mass tort cases illustrate the ongoing efforts by debtors and third parties to forge comprehensive settlements despite the challenges highlighted by the Purdue decision. These cases include the bankruptcy filings of … Read more