Pratt's Journal of Bankruptcy Law | U.S. Supreme Court Blocks Purdue Pharma Plan in Blow to Third-Party Releases in Bankruptcy Restructuring

October 2024 – Pratt's Journal of Bankruptcy Law

In Harrington v. Purdue Pharma L.P.,1 the U.S. Supreme Court blocked Purdue Pharma’s $6 billion plan settlement of opioid claims against the Sackler family and holding that the Bankruptcy Code does not authorize non-
consensual third-party releases in Chapter 11 plans.

This opinion has massive implications for mass-tort cases, such as the recent cases of the Boy Scouts and many Catholic Dioceses, that rely upon non-consensual third-party releases to resolve mass tort liabilities.

Click here to read the full article written by Ryan Hibbard and Alexandria A. Lundberg published in Pratt's Journal of Bankruptcy Law. 

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