Sacklers Up Their Offer to Settle Purdue Opioids Cases, with a New Condition​​​

Seven months after the Supreme Court struck down a deal that would have resolved thousands of opioid cases against Purdue Pharma, the company’s owners, members of the Sackler family, have increased their cash offer to settle the litigation — but with a novel catch, the New York Times reported. Under the framework for a new deal, the Sacklers would not receive immunity from future opioid lawsuits, a condition that they had long insisted upon but that the court ruled was impermissible. Instead, they would pay up to $6.5 billion — $500 million more than the previous agreement — but with a new condition: Claimants, including states, municipalities and individuals, would have to set aside as much as $800 million in an account akin to a legal-defense fund for the billionaires to fight such cases. Some details of the framework — but not the legal-defense fund — were announced today by New York Attorney General Letitia James. She said the overall settlement totaled $7.4 billion, which would include $897 million from Purdue. But how many claimants will agree to the new terms is unclear. James noted that 14 other states involved in talks were on board: Florida, Connecticut, Massachusetts, Tennessee, California, Colorado, Illinois, Delaware, Pennsylvania, Oregon, Texas, Vermont, Virginia and West Virginia. Read more.

Analysis: Payments for Some Student Loan Borrowers Could Triple in 2025​​​

A perfect storm is brewing for millions of federal student loan borrowers, who may experience dramatic increases in their monthly payments later this year, Forbes reported. Several Biden-era student loan forgiveness initiatives have been either struck down by courts or withdrawn, and mass debt relief is unlikely to happen under the Trump administration. Meanwhile, the SAVE plan — another key Biden-era program — remains blocked due to a legal challenge and appears poised to either get overturned by a federal appeals court or repealed by congressional Republicans in an upcoming reconciliation bill. Many other borrowers on income-driven repayment plans may also see larger-than-expected spikes in their monthly payments as they update their income with their loan-servicer, in some cases for the first time in five years or more. Any one of these issues may cause borrowers to see an increase in their student loan payments. But the combination of these intersecting developments could cause some Americans to wind up with a student loan bill that is several times the amount they have been paying. Read more.

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Weekly Unemployment Claims Register Modest Increase​​​

Jobless claims applications ticked up modestly last week, but the total number of Americans collecting unemployment benefits rose to their highest level in more than three years, the Associated Press reported. Applications for jobless benefits rose by 6,000 to 223,000 for the week ending January 18, the Labor Department said Thursday. Analysts were expecting 219,000 new applications. Weekly applications for jobless benefits are considered a proxy for layoffs. The total number of Americans receiving unemployment benefits for the week of January 11 climbed by 46,000 to 1.9 million, the most since November of 2021. The rising level of continuing claims, the total number of Americans collecting jobless benefits, suggests that some who are receiving benefits are finding it harder to land new jobs. That could mean that demand for workers is waning, even as the economy remains strong. Read more.

Pension Funds Want Private Equity to Open Up About Fees and Returns​​​

A group of U.S. pensions and other institutions is pushing private-equity firms to share more information on their fees and investment returns, in a bid to address simmering frustration with the industry’s disclosures, WSJ Pro Bankruptcy reported. The Institutional Limited Partners Association, a trade group that counts the retirement plans of public workers in California and Wisconsin as members, proposed this week new guidelines to standardize financial reporting by private-equity firms. Public pension plans, university endowments and charitable foundations have about doubled their investments in private-equity funds since 2018, according to Preqin, a company that collects data on private funds. These institutions are among alternative investment firms’ biggest and most loyal clients. North American private-equity funds now manage some $4 trillion in assets. Pensions have been turning to private equity to plug cash shortfalls for years, tolerating weaker reporting on their investments compared with public funds because most private funds had been generating higher returns. Now investors want more transparency. Read more.

Natural Disasters Cost $417 Billion Worldwide in 2024​​​

Natural disasters and severe weather cost the global economy $417 billion last year, including $154 billion for which insurers were on the hook, according to a new report, the Wall Street Journal reported. Last year was the warmest year on record dating to 1850 and saw a record 21 natural catastrophes with multibillion-dollar price tags, according to a report from Gallagher Re, a reinsurance broker. Gallagher Chief Science Officer Steve Bowen said the trend toward increased losses can be explained, in part, by the warming climate. Bowen said that climate change tends to make weather events such as hurricanes on average more severe, but not necessarily more frequent. Weather-related losses have been driven higher by inflation in the cost of rebuilding and the expansion of cities, which creates more built-up areas that could be pummeled by storms where previously there was countryside. The $154 billion in losses covered by insurers worldwide represented a 27% increase over the 10-year average. (Subscription required.) Read more.

Tenth Circuit Accepting Applications for Bankruptcy Judge Vacancies in Utah​​​

The U.S. Court of Appeals for the Tenth Circuit seeks applications to fill two bankruptcy judgeships in the District of Utah. The positions are located in Salt Lake City. One will be available July 1, 2025. The other will be available Sept. 5, 2025. Before appointment, the selected applicants must successfully complete a background investigation. Bankruptcy judges are appointed to 14-year terms pursuant to 28 U.S.C. § 152. The current annual salary is $227,608. Go to https://ca10.uscourts.gov/hr/jobs to view the position requirements and download the application. The deadline for applications is Wednesday, February 12, 2025.

INSOL International Looking for Candidates to Fill CEO Vacancy​​​

INSOL International, a cross-border nonprofit organization and catalyst for a wide range of ancillary groups representing the judiciary, regulators, lenders and academics, is looking for candidates to fill its Chief Executive Officer (CEO) vacancy. The position will play a key role in shaping the future of INSOL International by implementing the organization’s strategy, delivering initiatives, and expanding its influence and membership. For more information on the position and to submit an application, please click here.

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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