n June 27, 2024, the U.S. Supreme Court released its highly anticipated opinion in Harrington v. Purdue Pharma L.P., Case No. 23-124 (“Purdue”). The question before the Court was whether the bankruptcy code lets a court approve, as part of a chapter 11 plan, a release that extinguishes claims held by nondebtors against nondebtor third parties, without such claimants’ consent. Nonconsensual third-party releases of nondebtors allow those nondebtors to escape the rigors of filing for bankruptcy protection themselves while still receiving its primary benefit: a discharge of all material liability under a confirmed chapter 11 plan.

File Type: pdf
Categories: 2024, Author, Commercial Law World, Volume 38 Issue 3
Tags: bankruptcy, legislation, Purdue
Author: Candice L. Kline Esq.

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