Releases

Supreme Court Restricts Nonconsensual Releases in Chapter 11 Bankruptcies, Impacting Mass Tort Litigation

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Washington, D.C. – In a significant ruling that may transform the landscape of bankruptcy law, the U.S. Supreme Court has decisively limited the use of “nonconsensual third-party releases” in chapter 11 reorganization plans. This decision, falling on a narrow 5-4 margin, rejected these provisions, which previously allowed for the involuntary release of claims against nondebtors, such as the controversial inclusion of the Sackler family in Purdue Pharma’s bankruptcy case. Delivering the majority opinion, Justice Neil Gorsuch, joined by Justices Clarence Thomas, Samuel Alito, Amy Coney Barrett, and Ketanji Brown Jackson, articulated that such releases improperly … Read more

Supreme Court Ruling Reshapes Landscape of Bankruptcy Protections, Limits Third-Party Releases

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WASHINGTON — In a landmark decision that could redefine legal and financial strategies in U.S. bankruptcy courts, the Supreme Court has ruled against the use of non-consensual third-party releases for resolving mass tort claims, except in cases involving asbestos. This pivotal ruling ends a long-standing practice widely accepted by bankruptcy courts and removes a key tool that companies like Purdue Pharma have used to shield stakeholders such as directors or shareholders from related lawsuits when the company itself files for bankruptcy. For more than four decades, bankruptcy courts have employed non-debtor releases to facilitate broad … Read more

Judge Releases Accused Drug Dealer on Supervised Freedom, Ignoring $150K Bail Request

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NEW YORK — In what has become a controversial decision, Manhattan Criminal Court Judge Valentina Morales has recently allowed for supervised release of an accused drug dealer apprehended within her dental workplace. Madelyn Javier, 31, was caught in possession of a shipment containing illegal substances at Esthetix Dental Spa in Washington Heights, raising questions about the judge’s lenient approach in light of a significant bail request. Prosecutors had vigorously pushed for a substantial bail amount following Javier’s arrest. New York City Special Narcotics Prosecutor Bridget Brennan advocated for a bail of $100,000 cash or a … Read more

Judge Frees Gun and Drug Suspect Despite Past Controversial Releases

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Bronx, New York – A Venezuelan migrant who was found squatting in a Bronx home along with seven others was released by a judge who had previously freed two men involved in an assault on a police officer, according to records. The judge, Eugene Bowen, freed Hector Desousa-Villalta despite prosecutors requesting bail in the case. Desousa-Villalta was arrested after allegedly flashing a gun at another man outside the home. In November, Bowen had also released two men who were caught on video beating a police officer inside a subway station in the Bronx. The decision … Read more