Mass Tort Defendants Exploit Bankruptcy Rules To Avoid MDL

By Samir Parikh (April 14, 2021, 3:14 PM EDT) -- A renewed emphasis on accountability has ignited a new iteration of mass tort litigation.

The bankruptcy cases of Purdue Pharma LP, Boy Scouts of America, USA Gymnastics and Takata Corp. — in the U.S. Bankruptcy Courts for the Southern District of New York, the District of Delaware, the Southern District of Indiana and District of Delaware, respectively — are just four examples.[1]

These cases present distinct factual and resolution obstacles, but all have one thing in common: bankruptcy preemption. Indeed, these mass tort defendants filed for bankruptcy — just not for the reasons you may assume.

Bankruptcy preemption allowed these defendants...

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