Paul Hastings’ Post

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

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

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

#SPBRestructuring offers another insightful blog on the decision made by the US Supreme Court for Harrington v. Purdue Pharma!

#SPBRestructuring offers another insightful blog on the decision made by the US Supreme Court for Harrington v. Purdue Pharma!

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

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.

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

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

The United States Supreme Court issued its long awaited opinion in the Purdue Pharma L.P. case. While there will be many articles and thoughful analysis of the split 5-4 decision, to better understand the issues facing the Court and the possible ramifications of this ruling it would help to know who filed the 25 amicus curiae briefs in this case. https://lnkd.in/gNqrzXQj #DanningGill #PurduePharma #bankruptcy #bankruptcylaw #bankruptcylawfirm #thirdpartyreleases