Supreme Court Restricts Bankruptcy Shield, Impacting Opioid Settlements and Beyond
WASHINGTON — A recent Supreme Court ruling may significantly alter the landscape for using bankruptcy to address widespread litigation. The decision against Purdue Pharma’s bankruptcy settlement highlights a shift in how courts handle claims against parties who haven’t filed for bankruptcy themselves. This change could have broad implications for companies facing mass tort litigation. Bankruptcy courts have traditionally offered several tools to aid organizations in resolving these complex lawsuits, which include cases like the large-scale settlements involving the Catholic dioceses and the Boy Scouts of America. These courts can halt ongoing litigation, providing breathing space … Read more