Bankruptcy
Jul. 25, 2024
Dissenting opinion highlights concerns over Purdue Pharma’s impact on mass tort cases
The strongly-worded dissent warned that this ruling would hinder bankruptcy courts in managing cases with numerous abuse claims and ensuring fair recovery for victims and creditors.
On June 27, 2024, in a 5-4 opinion decided across ideological lines, the majority of the Supreme Court ruled that plans of reorganization in cases filed under chapter 11 of the Bankruptcy Code may not contain “nonconsensual third-party releases,” or provisions which provide for a nondebtor’s involuntary release of claims against another nondebtor. Harrington v. Purdue Pharma, L.P., 603 U.S. ---, 144 S.Ct. 2071 (2024) (
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