Mass Tort Defendants Exploit Bankruptcy Rules To Avoid MDL

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Coronavirus Q&A: Skadden's Mass Torts Leader

Law360 (Apr 14, 2021, 3:14 p.m. EDT) – A renewed emphasis on accountability has sparked a new iteration of mass disputes.

The bankruptcies of Purdue Pharma LP, Boy Scouts of America, USA Gymnastics, and Takata Corp. – in the US bankruptcy courts for the southern borough of New York, the borough of Delaware, the southern borough of Indiana and the borough of Delaware, respectively – are just four examples.[1]

These cases represent different material and resolution obstacles, but have one thing in common: bankruptcy prevention. In fact, these defendants have filed for bankruptcy for tortious reasons – just not for what you might think.

The bankruptcy requirement allowed these defendants …