Reshapes

Supreme Court Decision Reshapes Future of Mass Tort Bankruptcies, Limits Legal Shields for Non-Debtors

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NEW YORK — The Uamsung the decision by the Supreme Court could signal a pivot in the way corporations may use bankruptcy proceedings to settle massive lawsuits. This follows a recent decision which invalidated a key part of the agreement that would have resolved multidistrict litigation against Purdue Pharma, the manufacturer of OxyContin. The court ruled against the ability of bankruptcy courts to absolve claims directed at third parties who have not themselves declared bankruptcy—a standard practice that had been utilized by firms facing sizable litigation burdens. For years, bankruptcy courts provided a setting allowing … Read more

Supreme Court Decision Reshapes Bankruptcy Strategy, Limits Liability Shields for Non-Debtors in Mass Tort Settlements

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New York — A recent Supreme Court decision has potentially narrowed the utility of bankruptcy as a tactic for resolving extensive lawsuits, impacting strategies employed by large organizations such as the Catholic dioceses, Boy Scouts of America, and opioid manufacturers. The ruling denied the ability of bankruptcy courts to clear legal claims against affiliated parties that have not themselves sought bankruptcy protection, a strategy previously available and frequently utilized in mass tort litigation. Historically, bankruptcy courts have offered valuable tools for entities crushed by substantial legal challenges. These tools include a stay on existing litigation, … Read more

Supreme Court Strikes Down Purdue Pharma’s Reorganization Plan, Reshapes Chapter 11 Landscape

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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

High-profile Mass Tort Law Firm Watts Guerra Reshapes Future, Leaving Puerto Rico Office and Laying Off 50 Employees

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San Juan, Puerto Rico – High-profile mass tort law firm Watts Guerra, led by attorney Mikal Watts, is closing its Puerto Rico office and laying off dozens of employees, according to internal emails obtained by Bloomberg Law. Watts, known for spearheading high-stakes litigation against corporations, recently stated that he was “restructuring” the firm but had no intention of leaving. However, emails shared with Bloomberg Law reveal that Watts sent an email to all employees on January 7, announcing his resignation from the firm due to health reasons. He informed Bloomberg Law that he plans to … Read more