ANALYSIS: Three Predictions in Wake of Purdue Pharma Decision

In the most significant bankruptcy-related opinion of recent times, the Supreme Court held that the US Bankruptcy Code does not authorize the nonconsensual nondebtor releases in the Purdue Pharma Chapter 11 plan. A product of settlement among stakeholders, the releases would have eliminated liability for members of the Sackler family associated with Purdue Pharma’s opioids in exchange for them funding the plan with approximately $6 billion.

I previously explored the potential impact of the Supreme Court disallowing the releases, predicting that the court would find no statutory authority. I actually had changed my mind after listening to the oral argument, ...