US Supreme Court Ruling on Purdue Case Tightens Bankruptcy Resolution for Mass Litigation
Washington — A recent U.S. Supreme Court decision has significantly impacted the ability of companies to settle mass litigation through bankruptcy proceedings. The ruling specifically addressed the case involving Purdue Pharma, the manufacturer of the prescription painkiller OxyContin. This decision sets a precedent that could make it more challenging for businesses facing numerous lawsuits to seek resolution by filing for bankruptcy protection. Previously, bankruptcy courts were a venue for companies to deal with extensive liabilities, including class-action lawsuits. However, the Supreme Court’s decision mandates that for a bankruptcy plan to be affirmed, it must directly … Read more