Bankruptcy Law News and Insights

In late June the Supreme Court handed down Harrington v. Purdue Pharma L.P. a 5-4 decision in which the court made clear the decades-long practice of shielding non-debtors from future claims in exchange for their financial contribution to creditors' recovery in a Chapter 11 bankruptcy plan was no more. The Sackler family—who...

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The U.S. Trustee has recently taken the position that GUC Trusts (creditor trusts formed under bankruptcy plans) should be required to pay fees on account of their own disbursements to creditors. The outcomes in three recent bankruptcy cases highlight different approaches to addressing the U.S. Trustee's argument: closing bankruptcy cases...

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Third-party litigation funding is a multibillion-dollar U.S. industry in which investors help litigants and law firms pay legal fees and expenses in exchange for a return from a winning case or cases. It seems a natural fit in bankruptcy matters, with creditors vying for limited resources and liquidity-constrained debtors seeking...

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