✉news WorldLaw & Courts first seen 1 d ago, last 13 h 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

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• 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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