Validity of Non-Consensual Third-Party Releases Called into Question in Purdue Bankruptcy—But for How Long?

In In re Purdue Pharma, L.P., U.S. District Court Judge Colleen McMahon of the Southern District of New York vacated Purdue Pharma’s confirmed plan of reorganization after finding that the bankruptcy court below did not have statutory authority to issue a confirmation order granting non-consensual third-party releases—namely for the benefit of the Sackler family, which owns Purdue.