Reorganization

Washington, D.C. — In a landmark decision that reshaped the landscape of Chapter 11 bankruptcy law, the U.S. Supreme of Court delivered a split ruling on Thursday that struck down Purdue Pharma LP’s controversial reorganization plan. The justices ruled that the plan’s provision for nonconsensual third-party releases, which would have shielded parties not directly involved in the bankruptcy from lawsuits, did not align with lawful bankruptcy proceedings. The ruling has stirred a robust debate in the legal community about the implications for future corporate bankruptcies and the rights of individuals harmed by corporate actions, such … Read more