The release barred opioid lawsuits against the family, protecting them despite having not declared bankruptcy.and Jennifer K. Robbennolt, University of Illinois College of Law.
Bankruptcy can often be the “least worst” solution for tort claimants. For example, the total claims against Purdue Pharma were estimated at $40 trillion, far beyond the ability of even a large corporation to pay in full. Outside of bankruptcy, the claimants who had their cases heard first would deplete the corporate coffers, leaving nothing for those who came later.
This tactic, known as a nondebtor release, has been used in other corporate bankruptcy cases but none as much in the public eye as the Purdue Pharma case. The issue for the Supreme Court is a technical statutory question of whether the Bankruptcy Code allows a court to order a nondebtor release.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Law Law Latest News, Law Law Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump Would Still Be Liable for Civil Fraud Penalties Even If He Declared BankruptcyFormer President Donald Trump would still be liable to pay his civil fraud penalties even if he or the Trump Organization declared bankruptcy. New York appellate court that the former president couldn’t post a bond covering the full amount of a $454 million judgment that Trump and his co-defendants schemed for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals. With interest, Trump owes the state $456.8 million. He must post a bond covering the full amount of the judgment in order to pause its enforcement, which is set to begin on March 25. New York Attorney General Letitia James has said she would seek to seize some of Trump’s assets if he is unable to pay. Citing rejections from more than 30 bond underwriters, Trump’s lawyers wrote in a court filing that “obtaining an appeal bond in the full amount” of the judgment “is not possible under the circumstances presented.” Lawsuits, including those related to the Capitol riot and a defamation case against the writer E. Jean Carroll, have pushed his legal debt north of a half-billion dollars, according to his lawyers. Experts say that declaring bankruptcy would not get former president Donald Trump out of paying his civil fraud penalties.
Source: 12News - 🏆 586. / 51 Read more »
Research paper makes further allegations regarding FTX's bankruptcy lawyers conflicts of interestFTX's bankruptcy law firm Sullivan and Cromwell is coming under a microscope amid allegations of potential conflicts of interest.
Source: TheBlock__ - 🏆 464. / 53 Read more »
Not So Fast: Court Fires at SBF for Transferring Assets During Bankruptcy ProceedingsSBF objects to the bankruptcy fraud enhancement in his sentencing, arguing against its application based on his actions during the bankruptcy proceedings.
Source: hackernoon - 🏆 532. / 51 Read more »