In Westlaw Article, Otterbourg Lawyers Examine Evolving Landscape of Bankruptcy Third-Party Releases Post-Purdue
April 17, 2026
Westlaw has published the article “Purdue developments in bankruptcy third-party release practices,” written by Otterbourg partner Melanie L. Cyganowski, of counsel Michael Maizel and associate Varinder Singh. The article discusses the emerging law governing consensual third-party releases in Chapter 11 cases following the Supreme Court’s 2024 decision in Harrington v. Purdue Pharma L.P.
The authors write that the Purdue case, “materially altered chapter 11 practice in most jurisdictions by holding that the Bankruptcy Code does not, outside of the context of asbestos cases, authorize a chapter 11 plan to release creditors’ direct claims against a non-debtor without the consent of the affected creditor.” They then examine some of the methods being used by debtors still looking to dispose of claims between creditors and non-debtor affiliates in bankruptcy.
The article concludes with a look at some practical implications as well as questions that remain following Purdue.
To read the article in its entirety, please click HERE.