Supreme Court Limits Bankruptcy Shield, Forcing Companies to Reassess Settlement Strategies in Mass Tort Cases
Washington — The recent U.S. Supreme Court ruling has significantly impacted how bankruptcy can be employed, particularly in mass tort litigations involving organizations like Purdue Pharma, the makers of OxyContin. The court has curtailed the scope of bankruptcy courts, specifically rescinding their authority to dismiss legal claims against non-debtors without the explicit consent of the involved parties. Historically, bankruptcy proceedings have provided a robust mechanism for organizations to manage and settle widespread legal challenges, including cases related to sexual abuse and consumer products linked to health issues. Such procedures allowed for the automatic halting of … Read more