Lifetime grants of lawsuit immunity have become a pervasive but little-understood feature of the U.S. bankruptcy system. The releases are now granted by judges in 9 of 10 major Chapter 11 cases, a Reuters review finds specialreports
Scandals brought down Harvey Weinstein’s movie studio and major opioid supplier Mallinckrodt.
But their wealthy owners, directors and executives were granted lifetime immunity from related lawsuits in bankruptcy court — an overwhelmingly common tactic in major U.S. Chapter 11 cases, a Reuters review found.
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