Commercial Law League of America and the Venue Reform Group Files Amicus Brief in Purdue Pharma Supreme Court Bankruptcy Appeal, Advocating for Venue Reform

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Rolling Meadows, IL, October 5, 2023 – Throughout its 129 years of existence, the Commercial Law League of America (CLLA) has consistently promoted and supported the fair, equitable, and efficient administration of collection and bankruptcy laws for all parties-in-interest, which includes advocating for bankruptcy venue reform. On September 27, 2023, the CLLA, along with the National Bankruptcy Venue Reform Committee, filed an Amicus Brief with the Supreme Court of the United States in the appeal of the Purdue Pharma case in which the 2nd Circuit Court of Appeals upheld the use of non-consensual third-party releases. Although the CLLA did not take a position with regard to the main issue for the Supreme Court to determine, which is whether non-consensual third-party releases can be approved as part of a Chapter 11 plan of reorganization, the CLLA advocated for venue reform, noting how the Purdue case itself had been shopped and the systemic dangers of forum shopping in Chapter 11 bankruptcy cases.

 

The CLLA noted that H.R. 1017, presently pending in the House of Representatives, would require that companies file for bankruptcy in the jurisdiction where their principal place of business or principal assets are located. In supporting that bill, the CLLA noted in the Amicus Brief that “While the issue before the Court is not about venue shopping, it is part of the fabric of how this case came to be before the Court. The Court should ensure that its ruling on the issue before the Court—nonconsensual third-party releases—does not further exacerbate the deleterious use of venue shopping in bankruptcy cases”. The Amicus Brief can be found here: https://clla.org/clla-press-releases/.

About the CLLA

Since 1895, the not-for-profit Commercial Law League of America has connected experienced attorneys with credit grantors, lending institutions and other commercial credit, bankruptcy and general finance industry members through networking, education, legislative advocacy and specialized legal services. The Association’s members include attorneys, collection agencies, judges, accountants, trustees, turnaround managers, law lists and other credit and finance experts. For more information on the CLLA, please visit www.CLLA.org.

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