Harringtonv.Purdue Pharma L.P.
Purdue Pharma entered bankruptcy after years of opioid litigation, while the Sackler family proposed contributing billions of dollars to the estate in exchange for a court order releasing the family from opioid-related claims and preventing future suits against them. The United States Trustee objected that the bankruptcy court lacked authority to grant that nondebtor release without the affected claimants’ consent. The Supreme Court of the United States held that the Bankruptcy Code does not authorize a bankruptcy court to release claims against a nondebtor without the claimants’ consent. The Court reversed the judgment approving the Purdue plan and remanded. The majority treated the release as beyond the statutory powers granted in bankruptcy, while a dissent warned that the ruling would destabilize mass-tort reorganizations and leave victims without a workable collective remedy.
Loading published copy…

