Coase-Sandor Institute for Law & Economics Research Paper Series
Publication Date
2023
Publication Title
Coase-Sandor Working Paper Series in Law and Economics
Abstract
As the bankruptcy of Purdue Pharma heads to the United States Supreme Court, the bankruptcy world is once again in a frenzied debate about “third-party” or “nondebtor” releases. This debate often devolves, unfortunately, into one of rhetoric producing, as they say, more heat than light.
It can be difficult to address all the nuances in short form. I have laid out a long-form academic argument in favor of nondebtor releases elsewhere. And I have addressed some of the policy considerations here and here. But it may be useful to use this space to counter two of the weaker arguments against nondebtor releases. The first is that releases let wrongdoers escape consequences. The second is that the Bankruptcy Code prohibits nondebtor releases. Neither of these arguments stands up to scrutiny.
Number
1034
Recommended Citation
Casey, Anthony, "The Flawed Arguments Against Bankruptcy Releases" (2023). Coase-Sandor Institute for Law & Economics Research Paper Series. 1034.
https://chicagounbound.uchicago.edu/law_and_economics/1091
