10 Major Issues That Justices Must Decide In Summer
America ı By Rochdi Rais
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Bankruptcy Releases
U.S. Trustee William K. Harrington has asked the Supreme Court to prohibit bankruptcy courts from approving Chapter 11 organization plans that include third-party nonconsensual releases, which in this case would free members of the Sackler family, owners of Purdue Pharma LP, from liability for damages stemming from the opioid epidemic. Harrington argues the Bankruptcy Code doesn't authorize bankruptcy judges to approve such wide-sweeping releases that can be entered in to without the consent of potential litigants. Purdue Pharma, on the other hand, argues those releases fall squarely into the Bankruptcy Codes' allowance for creative reorganization plans. This specific release, the company says, also serves the public interest and allows claimants to recover more damages from an established fund than they would if they sued the Sacklers individually.
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