From Paul Hastings: In a landmark decision that will significantly impact future reorganization plans, the Supreme Court categorically held in Harrington v. Purdue Pharma L.P., that bankruptcy courts lack the authority to approve nonconsensual third party releases as part of chapter 11 plans. This decision, one of the most consequential for bankruptcy practitioners in recent memory, will force an immediate shift in the manner in which direct third party claims are addressed and protected in bankruptcy going forward. #scotus #purduepharma #bankruptcycourts #chapter11 #thirdparties
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Purdue Pharma: Paul Hastings Analysis The SC ruled 5-4 that bankruptcy courts cannot release claims against nondebtors without the consent of affected claimants. Implications: ⦿ Pre-arranged and pre-packaged bankruptcies will face challenges in maintaining confidentiality and speed. ⦿ Increased litigation and solicitation efforts may disrupt businesses and extend bankruptcy cases. ⦿ Sponsors and third parties might reduce contributions to bankruptcy plans, affecting estate recoveries. For a deeper dive into the ruling and its broader implications, read the full article here below. #SupremeCourt #Bankruptcy #PurduePharma #LegalUpdate #CorporateLaw
In a landmark decision that will significantly impact future reorganization plans, the Supreme Court categorically held in Harrington v. Purdue Pharma L.P., that bankruptcy courts lack the authority to approve nonconsensual third party releases as part of chapter 11 plans. This decision, one of the most consequential for bankruptcy practitioners in recent memory, will force an immediate shift in the manner in which direct third party claims are addressed and protected in bankruptcy going forward. Read our full alert to understand the practical implications of this pivotal ruling. Kris Hansen Ken Pasquale Daniel Fliman Ryan Montefusco Isaac Sasson Leonie C. Koch #PurduePharma #Bankruptcy
The Purdue Decision on Third Party Releases and Its Practical Implications | Paul Hastings LLP
paulhastings.com
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In a landmark decision that will significantly impact future reorganization plans, the Supreme Court categorically held in Harrington v. Purdue Pharma L.P., that bankruptcy courts lack the authority to approve nonconsensual third party releases as part of chapter 11 plans. This decision, one of the most consequential for bankruptcy practitioners in recent memory, will force an immediate shift in the manner in which direct third party claims are addressed and protected in bankruptcy going forward. Read our full alert to understand the practical implications of this pivotal ruling. Kris Hansen Ken Pasquale Daniel Fliman Ryan Montefusco Isaac Sasson Leonie C. Koch #PurduePharma #Bankruptcy
The Purdue Decision on Third Party Releases and Its Practical Implications | Paul Hastings LLP
paulhastings.com
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Head of Bankruptcy and Restructuring Practice Group at Shiryak, Bowman, Anderson, Gill and Kadochnikov LLP
In our latest Bankruptcy with Ben installment, I unpack the Second Circuit's concurrence in Purdue Pharma. This key moment in bankruptcy jurisprudence offered crucial perspectives on third-party releases. If you're navigating the bankruptcy world, this insight is essential! #BankruptcyWithBen #PurduePharma #BankruptcyLaw #ThirdPartyReleases NOT LEGAL ADVICE
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#SPBRestructuring offers another insightful blog on the decision made by the US Supreme Court for Harrington v. Purdue Pharma!
Squire Patton Boggs on LinkedIn: #spbrestructuring #bankruptcy #purduepharma #teamspb
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#SPBRestructuring offers another insightful blog on the decision made by the US Supreme Court for Harrington v. Purdue Pharma!
Squire Patton Boggs on LinkedIn: #spbrestructuring #bankruptcy #purduepharma #teamspb
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Head of Bankruptcy and Restructuring Practice Group at Shiryak, Bowman, Anderson, Gill and Kadochnikov LLP
In our latest Bankruptcy with Ben episode, we explore the Second Circuit's pivotal analysis of third party releases in Purdue Pharma. Understand when the third-party releases are deemed appropriate as we lay the foundation for the ultimate Supreme Court' ruling on the appropriateness of third part release. Don't miss this crucial analysis! NOT LEGAL ADVICE #BankruptcyWithBen #PurduePharma #ThirdPartyReleases #BankruptcyLaw #LegalInsights #SBAGKLLP
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Partner and GC at HSW - Obtaining Advancement and Indemnification from Insurers and Employers - Litigating and Negotiating Employment and Contractual Disputes
I shared some thoughts with Law360 on the Supreme Court's decision in Purdue Pharma reinforcing the need for robust D&O Coverage: https://lnkd.in/eFYBzr4s Please don't hesitate to reach out to me with any questions about D&O Coverage in light of this important decision.
Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage - Law360
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Head of Bankruptcy and Restructuring Practice Group at Shiryak, Bowman, Anderson, Gill and Kadochnikov LLP
In our latest in Bankruptcy with Ben, we continue in the Purdue Pharma saga. In this episode we explore Factor 5: Substantial Contribution. See how the Second Circuit evaluated the Sackler's substantial financial contribution to the Purdue Pharma Plan to secure their highly contested third-party release. Understand this key criteria to follow how the Second Circuit arrived at its decision. #BankruptcyWithBen #ThirdPartyReleases #BankruptcyLaw #SubstantialContribution #LegalInsights #BankruptcyCourt #FinancialStrategy #SBAGKLLP NOT LEGAL ADVICE
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The Supreme Court's opinion in Purdue Pharma will impact not only Purdue and its hundreds of thousands of creditors, but more generally on how Chapter 11 reorganization plans will be prosecuted in the future. In this alert, we analyze the Supreme Court's opinion and address the implications of the Court's ruling. #teamspb #spbrestructuring
Purdue Pharma: Supreme Court Rejects Nonconsensual Third-party Releases | Publications | Insights & Events | Squire Patton Boggs
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In the recent decision in Purdue Pharma, the US Supreme Court ruled 5-4 that the Bankruptcy Code does not authorize broad release and injunction provisions for non-debtors in Chapter 11 plans without the consent of affected claimants. - This decision settles a major legal dispute that has been highlighted in some of the largest bankruptcy cases filed over the last several years—nonconsensual third-party releases. - The ruling is expected to reshape the contours of liability, compensation, and the reorganization process in future bankruptcy cases, potentially limiting the scope of protections available to non-debtors in bankruptcy cases. - This ruling sets a precedent that could influence how companies facing mass-tort liability negotiate settlements within bankruptcy proceedings, potentially leading to longer and more complex reorganization processes. #FinancialServices https://lnkd.in/e9mDtJYm
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