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

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 Backs Oregon City’s Ban on Public Camping, Intensifying Debates Over Homelessness Policy

Grants Pass, Ore. — In a landmark decision, the U.S. Supreme Authority affirmed the legality of anti-camping laws in Grants Pass, Oregon, giving cities across the nation clearer latitude to regulate homeless encampments on public land. The ruling, delivered with a 6-3 majority, overturned a previous judgment that deemed these laws unconstitutional under the Eighth Amendment when no alternative shelter is provided. At the heart of the controversy are three ordinances in Grants Pass that disallow sleeping in public spaces with bedding or blankets, enforceable by fines and potential jail time for repeat offenders. This … Read more

Oklahoma Supreme Court Strikes Down Taxpayer-Funded Religious School, Ongoing Lawsuit Seeks to Uphold State Constitution

Oklahoma City, Oklahoma — The Oklahoma Supreme Court recently ruled against the establishment of a taxpayer-funded religious school, marking a significant moment in the ongoing legal battles over publicly funded religious education in the state. The court found that the creation of St. Isidore of Seville, a virtual Catholic public charter school, violated the state constitution, putting a pause on its planned opening this year. This decision is not the end of the legal challenges facing St. Isidore. In Oklahoma County District Court, a class action lawsuit spearheaded by the Oklahoma Parent Legislative Action Committee … Read more

Supreme Court Decision Challenges Traditional Bankruptcy Shields, Shakes Up Mass Tort Settlements

New York — A recent Supreme Court decision could make bankruptcy a less favorable option for companies looking to settle massive legal battles. This landmark ruling rejected OxyContin manufacturer Purdue Pharma’s Chapter 11 settlement, impacting the way courts handle legal claims against third parties who haven’t filed for bankruptcy themselves. Bankruptcy courts have historically provided several mechanisms that facilitate the resolution of large-scale litigation, such as the ability to halt ongoing lawsuits and force unwilling claimants to adhere to settlements. These tools have been used in a variety of cases, including those involving allegations of … Read more