Client Alert

The Purdue Decision on Third Party Releases and Its Practical Implications

July 01, 2024

In a landmark decision that will significantly impact future reorganization plans, the Supreme Court categorically held in Harrington v. Purdue Pharma L.P., that bankruptcy courts lack the authority to approve nonconsensual third party releases as part of chapter 11 plans. This decision, one of the most consequential for bankruptcy practitioners in recent memory, will force an immediate shift in the manner in which direct third party claims are addressed and protected in bankruptcy going forward. Read our full alert to understand the practical implications of this pivotal ruling.

Click here for a PDF of the full text

Get In Touch With Us

Contact Us