*John Osborne
I. Introduction
A 2024 Supreme Court decision in Harrington v. Purdue Pharma L.P. sent shockwaves through the bankruptcy law community and the vast network of opioid crisis victims.[1] The Supreme Court heard Harrington to decide one important issue: whether the Bankruptcy Code authorizes a court to issue an order “extinguishing vast numbers of existing claims” against a non-debtor third party without the consent of some affected claimants.[2] Unraveling a hard-fought $4.3 billion settlement between Purdue Pharma L.P. (Purdue) and victims of the opioid crisis, as well as state, local, and tribal governments,[3] the Court found that the Bankruptcy Code did not authorize the lower court to issue nonconsensual release or extinguishment orders for non-debtor third parties.[4]
Continue reading “A Broken Shield or a Double-Edged Sword?: The Fall of Nonconsensual Third-Party Releases”