✉news WorldLaw & Courts first seen 9 h ago, last 51 min ago, peak #19
Purdue Ruling May Prompt More Subchapter V Nondebtor Stays
Original: Post-Purdue Ruling Could Invite More Sub V Nondebtor Stays
Following the US Supreme Court's ruling rejecting the Purdue Pharma bankruptcy plan's nonconsensual third-party releases, legal observers say bankruptcy courts may see more attempts to use Subchapter V of the small-business reorganization rules to impose nondebtor stays and achieve similar protections for third parties. Attorneys are weighing whether the workaround can survive challenges, with implications for mass-tort and opioid-related litigation strategy.
Why now: The Supreme Court's June 2025 Purdue Pharma decision left parties searching for new legal routes to shield nondebtors from litigation.
Purdue PharmaUS Supreme CourtSubchapter VLaw360
Evidence
- Post-Purdue Ruling Could Invite More Sub V Nondebtor Stays · Law360
- Post-Purdue Ruling Could Invite More Sub V Nondebtor Stays · Law360
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