Resolutions

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 Decision on Purdue Case Raises Complexities for Mass Tort Resolutions in Bankruptcy

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Washington, D.C.—A recent Supreme Court decision concerning Purdue Pharma has set a new precedent that may substantially impact how mass tort liabilities are managed in bankruptcy cases across America. This ruling comes amidst a significant legal challenge concerning the restructuring of Purdue Pharma, the pharmaceutical giant largely blamed for its role in the opioid epidemic. The court’s decision complicates the path for companies seeking bankruptcy protection as a strategy to resolve massive tort liabilities. The case centered around Purdue Pharma’s proposal to resolve thousands of lawsuits linked to the opioid crisis through a restructuring plan … Read more

Insurer Standing in Bankruptcy Cases: A Controversial Debate that Could Impact Mass Tort Resolutions

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Houston, Texas – Insurers seeking broad standing in mass tort bankruptcy cases face opposition from legal experts. The U.S. Supreme Court is considering whether to endorse insurer standing in the case of Truck Insurance Exchange v. Kaiser Gypsum Company Inc., with some arguing that a broad view of insurer standing would eliminate obstacles to resolving insurer objections. However, experts argue that insurers’ claims are based on two fallacies and that expanding their standing would only lead to unnecessary delays in bankruptcy proceedings. The first fallacy criticized by legal experts is the notion that the goal … Read more