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Supreme Court Pauses Purdue Pharma Bankruptcy Settlement Over Nonparty Releases

August 10, 2023 3:44 PM | Anonymous member (Administrator)

The U.S. Supreme Court agreed on August 10, 2023 to consider a challenge to the Purdue Pharma bankruptcy settlement.  The challenge argues that the family behind Purdue Pharma should not be able to take advantage of legal protections meant for debtors in "financial distress."  Federal appeals courts are split on the issue.  Challengers argue that the deal “applies to an untold number of claimants who did not specifically consent to the release’s terms,” a deal that “constitutes an abuse of the bankruptcy system, and raises serious constitutional questions.”  The Court will hear arguments in the case this December.  See, e.g., New York Times article.

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