News & Analysis as of

Pharmaceutical Industry Bankruptcy Court

Ward and Smith, P.A.

Should I Care About the Purdue Pharma Decision?

Ward and Smith, P.A. on

On June 27, 2024, the United States Supreme Court decided the Purdue Pharma appeal. In a five-to-four decision, the Supreme Court held that a bankruptcy court may not extend to non-debtors the benefits of a Chapter 11...more

Shumaker, Loop & Kendrick, LLP

Purdue Pharma Third Party Releases: A Bitter Pill To Swallow - Eurofenix, Autumn 2023

David Conaway reports on a recent Chapter 11 plan of reorganization submitted by Purdue Pharma (Oxycontin) to resolve a mass tort claim. The Supreme Court of the United States (SCOTUS) is having difficulty swallowing the...more

Jones Day

Second Circuit Green Lights Purdue Pharma Chapter 11 Plan Containing Nonconsensual Third-Party Releases

Jones Day on

There is longstanding controversy concerning the validity of third-party release provisions in non-asbestos trust chapter 11 plans that limit the potential exposure of various non-debtor parties involved in the process of...more

Troutman Pepper

Bankruptcy Court Provides Guidance on Social Media Account Ownership

Troutman Pepper on

The U.S. Bankruptcy Court for the Southern District of Florida created a three-factor test to help determine the ownership interests of social media accounts. The court in In re Vital Pharm found that (1) documented property...more

A&O Shearman

Second Circuit Picks a Side in Non-consensual Third-party Releases in Highly Anticipated Purdue Opinion

A&O Shearman on

Non-consensual third-party releases are provisions in reorganization plans that release non-debtor parties from liability to other non-debtor parties without the consent of all potential claimholders. These releases are...more

Cadwalader, Wickersham & Taft LLP

Third Circuit Dismisses J&J Affiliate LTL’s Talc Liability Chapter 11 Filing; “Good Faith” Under 1112(b) Requires Financial...

Executive Summary: On January 30, 2023, the U.S. Court of Appeals for the Third Circuit (the “Court”) issued an opinion in In re LTL Management, LLC, No. 22-2003, 2023 WL 1098189, at *1 (3d Cir. Jan. 30, 2023) (“LTL...more

Seward & Kissel LLP

Endo come out smoking, book of Mormon, 3M District Court admonition, Celsius BTC mining approved

Seward & Kissel LLP on

Endo Files for Bankruptcy as U.S. Opioid Litigation Drags | Reuters - Endo International Plc filed for bankruptcy this week, becoming the latest pharmaceutical company to file in the wake of opioid lawsuits. Endo reached a...more

Proskauer - Minding Your Business

The (Third) Party’s Over? Recent Decisions Cast Doubt on the Continued Vitality of Third Party Releases in Chapter 11...

Two recent decisions by U.S. District Courts have rejected attempts to include nonconsensual third party releases in chapter 11 reorganization plans. These rulings suggest third party releases may be facing increasing push...more

Vinson & Elkins LLP

In re Mallinckrodt PLC.: Delaware Bankruptcy Court Approves Non-Consensual Third-Party Releases in Contrast to Purdue and Ascena

Vinson & Elkins LLP on

On February 3, 2022, as part of a series of recent decisions addressing third-party releases, Bankruptcy Judge John T. Dorsey of the Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) confirmed the chapter...more

Bailey & Glasser, LLP

Third Circuit Signals Possible Limitations On Setoff Rights

Bailey & Glasser, LLP on

Parties to corporate transactions often rely on contractual setoff rights to help ensure that they can be paid or at least limit the amounts lost if the counterparty fails to pay.  While the Bankruptcy Code generally protects...more

ArentFox Schiff

Investigations Newsletter: Department of Justice Announces $8.3 Billion Settlement with Opioid Manufacturer Purdue Pharma and...

ArentFox Schiff on

Department of Justice Announces $8.3 Billion Settlement with Opioid Manufacturer Purdue Pharma and Members of the Sackler Family - On October 21, the Department of Justice (DOJ) announced that it reached a global resolution...more

Cole Schotz

New Delaware Chapter 11 Filing – Kalobios Pharmaceuticals, Inc.

Cole Schotz on

Kalobios Pharmaceuticals, Inc., a biopharmaceutical company that develops cancer treatments, has commenced a case under Chapter 11 of the Bankruptcy Code by filing a petition for relief with the U.S. Bankruptcy Court for the...more

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