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Bankruptcy Judges Struggle With Meaning of ‘Consensual Release’ Post-Purdue

Following the U.S. Supreme Court’s 2024 decision in Purdue, which held that nonconsensual third-party releases are impermissible under the Bankruptcy Code, bankruptcy judges across multiple jurisdictions have been grappling with what constitutes a “consensual” release. Harrington v. Purdue Pharma L.P., 603 U.S. 204 (2024). This article analyzes how different judges have defined “consent” and provides guidance on best practices for structuring third-party releases.

10 minute read October 01, 2025 at 12:11 AM
By
Seth H. Lieberman and Amanda M. Schaefer
Bankruptcy Judges Struggle With Meaning of ‘Consensual Release’ Post-Purdue

Following the Supreme Court’s June 27, 2024, decision in Purdue, which held that nonconsensual third-party releases are impermissible under the Bankruptcy Code, bankruptcy judges across multiple jurisdictions have been grappling with what constitutes a “consensual” release.

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