bankruptcy law

Court clears way on bankruptcy deal for maker of OxyContin

Court clears way on bankruptcy deal for maker of OxyContin
Court clears way on bankruptcy deal for maker of OxyContin
FILE PHOTO: Bottles of prescription painkiller OxyContin pills, made by Purdue Pharma LP sit on a counter at a local pharmacy in Provo, Utah, US, April 25, 2017. [Photo/Agencies]

A federal appeals court in New York on Tuesday cleared the way for a bankruptcy deal that will protect the billionaire Sackler family — whose Purdue Pharma produced the painkiller OxyContin that fueled the US opioid addiction crisis — from future lawsuits in exchange for $6 billion to fight opioid addiction and to assist the drug’s victims.

The settlement plan includes a total of up to $750 million, and eligible claimants would each receive between $3,500 and $48,000.

The Sacklers earned billions of dollars from the sale of OxyContin and other opioids. Family members have denied wrongdoing and said they wouldn’t fund the $6 billion settlement payment unless they were fully released from civil liability.

Government lawyers had argued that the settlement plan grants the Sacklers, who haven’t personally filed for bankruptcy, protections against opioid liability that aren’t permitted by US bankruptcy law.

The Justice Department could ask the Supreme Court to review Tuesday’s ruling.

The ruling by the US Court of Appeals for the Second Circuit reversed a December 2021

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June 5, 2023 by ATTORNEY

Crypto meltdown a boon for U.S. bankruptcy lawyers

Crypto meltdown a boon for U.S. bankruptcy lawyers

The value of bitcoin has dropped 65 per cent so far this year, and large law firms can rake in more than $100 million in legal fees during a long-running bankruptcy, experts say.

Publishing date:

Dec 03, 2022  •  5 days ago  •  3 minute read

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Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28.
Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28. Photo by DADO RUVIC /REUTERS

Turmoil in the cryptocurrency industry has rattled major exchanges and sent the value of digital assets tumbling, but at least one group stands to gain: bankruptcy lawyers.

High-profile bankruptcies involving crypto exchange FTX, hedge fund Three Arrows Capital and crypto lenders BlockFi, Celsius Network and Voyager Digital Ltd are generating new opportunities – and big fees – for law firms that counsel troubled companies.

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December 9, 2022 by ATTORNEY

Crypto meltdown a boon for bankruptcy lawyers

Dec 2 (Reuters) – Turmoil in the cryptocurrency industry has rattled major exchanges and sent the value of digital assets tumbling, but at least one group stands to gain: bankruptcy lawyers.

High-profile bankruptcies involving crypto exchange FTX, hedge fund Three Arrows Capital and crypto lenders BlockFi, Celsius Network and Voyager Digital Ltd are generating new opportunities – and big fees – for law firms that counsel troubled companies.

Large law firms can rake in more than $100 million in legal fees during a long-running bankruptcy, experts said.

“You’ve got to pay the gravedigger,” said Adam Levitin, a law professor at Georgetown University who specializes in bankruptcy law. “These are complicated cases with a bunch of novel issues, and it shouldn’t be surprising that they are going to require a lot of attorney involvement.”

The value of bitcoin has dropped 65% so far this year, dragging down other crypto assets and leaving investors reeling. The spectacular implosion of FTX last month sent fresh shock waves through the cryptocurrency industry.

One U.S. law firm, Kirkland & Ellis, is representing BlockFi in its bankruptcy case filed on Monday and is also lead counsel for Celsius Network and Voyager Digital, which both filed

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December 4, 2022 by ATTORNEY
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