Harrington v. Purdue Pharma L.P.

The Supreme Court considered whether a bankruptcy court can approve a Chapter 11 reorganization plan that releases legal claims against non-debtor third parties, specifically the Sackler family owners of Purdue Pharma, without the consent of the claimants. In a 5-4 decision, the Court held that the Bankruptcy Code does not authorize such nonconsensual third-party releases.