Matt Levine’s Money Stuff: Purdue’s Bankruptcy Went Too Far (Correct)

Purdue

Bankruptcy is a very powerful part of US law. When a company files for bankruptcy, it’s usually because a lot of people have a lot of valid claims against it. It has borrowed a lot of money, promised to pay it back, and failed to do so; perhaps it has taken money from customers and not delivered the goods; perhaps it has promised its workers pensions and reneged on its promises; perhaps it has harmed a lot of people and been sued for damages.

All of those people have a good moral case to get their money, and also ...