The End(s) of Bankruptcy Exceptionalism: Purdue Pharma and the Problem of Social Debt
February 18, 2026 The Supreme Court’s 5-4 decision in the controversial chapter 11 bankruptcy reorganization of opioid-maker Purdue Pharma ended the use of nonconsensual third-party “releases,” which discharge (eliminate) liabilities of nondebtors who may share liability with a corporate debtor. Although the majority opinion is correct that the Bankruptcy Code does not permit this, it