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The Purdue Pharma Ruling – Some Clear Rules, Some Grey Areas, and the Implications for Victims
Brad Sandler and Jonathan Kim recently penned an article for the Creditor Rights Coalition analyzing how the Supreme Court’s landmark Purdue Pharma decision will affect future bankruptcy cases. The 5-4 ruling, which Brad also commented on for Forbes, held that “the bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seeks to discharge claims against a non-debtor without the consent of affected claimants,” which could have substantial impacts on both mass tort cases and larger chapter 11 cases. In the Creditor Rights Coalition piece, Brad and Jonathan unpack the majority opinion and explain that the ruling will likely have a trickle-down effect on all complex bankruptcy cases going forward that may extend beyond nonconsensual third-party releases.
Brad and Jonathan ultimately conclude that “Regardless of the merits of the majority opinion in Purdue Pharma, it seems likely, and is unfortunate, that a substantial price will have to be paid by innocent mass-tort victims as the implications of the Purdue Pharma ruling develop over time through the judicial system.”
Read the full article by clicking below.