Reported about 1 year ago
A recent U.S. Supreme Court ruling involving OxyContin maker Purdue Pharma has made it tougher to resolve mass tort litigation in bankruptcy by scuttling non-debtor releases. Bankruptcy courts offer tools to settle mass torts, such as halting litigation, binding holdout claimants, and providing civil immunity. Critics argue that bankruptcy is sometimes abused by wealthy defendants facing lawsuits. The ruling will likely shift the focus to other strategies for resolving mass torts, potentially impacting victims' settlements and outside contributions. Some fear less funding for victims without non-debtor releases, while others believe companies will need to offer better payouts to resolve cases outside of bankruptcy.
Source: YAHOO