Partner Andrew Perry recently examined the landmark Purdue Pharma bankruptcy and what its resolution means for the insurance industry in his article, “The Purdue Pharma Fallout,” published in CLM Magazine.
Stemming from widespread opioid litigation brought against Purdue Pharma, the Purdue Pharma bankruptcy became one of the most closely watched mass tort cases in recent history. The Supreme Court’s landmark ruling in Harrington v. Purdue Pharma ultimately held that a Chapter 11 plan may not release non-debtors from liability without the consent of claimants, leading to a revised plan which was confirmed in November 2025.
In his article, Andrew highlights several key takeaways for insurers from the confirmed amended plan, including:
- How the opt-in consensual release framework reshaped how third-party releases are structured in mass tort bankruptcies,
- How the amended plan also transfers Purdue’s insurance rights, including rights to defense and indemnity, to settlement trusts by operation of law, and
- Where insurers’ contractual defenses stand under the amended plan.
Andrew also notes that while the plan preserves these defenses, conflicts between trust distribution procedures and policy terms are likely to give rise to future coverage disputes.
Read the full article here.
Andrew Perry concentrates his practice on bankruptcy insurance coverage disputes. He has significant experience representing insurance company interests in mass tort cases and advising on the enforceability of contractual obligations in bankruptcy proceedings nationwide. Andrew’s primary objective is to explain the impact of bankruptcy proceedings on the insurer’s obligations under an insurance policy and preserve the contractual rights of all parties to the insurance contract.
CLM Magazine is the premier source for content that addresses trends, topics of interest, and industry challenges for those in the claims and litigation management industry. Drawing upon the CLM’s vast network of member firms and fellows as contributors provides the publication with unparalleled access to expert commentary and analysis.