Justices Pass on Hearing Narrow Bankruptcy Liability Shields (1)

The US Supreme Court declined to examine a case probing how far a bankrupt company can go in providing a certain legal liability releases for board directors and others involved in a reorganization.

The justices’ refusal Tuesday means the bankruptcy plan for Dallas-based investment firm Highland Capital Management must continue to leave out some liability releases, called exculpations, that were rejected by the Fifth Circuit.

The ruling also suggests that the Supreme Court for now has little appetite to delve deeper into the weeds of bankruptcy liability issues after its blockbuster ruling last week in Purdue Pharma LP, which nixed ...