Security News
Silence Is Consent: Texas Federal Court Upholds Opt-Out Third-Party Releases After Purdue
UnknownMar 4, 2026(3 days ago)
The U.S. District Court for the Southern District of Texas upheld opt-out procedures for third-party releases in Chapter 11 plans, referencing Epstein v. The Container Store Group, Inc.
On February 12, 2026, the U.S. District Court for the Southern District of Texas issued a significant ruling affirming that opt-out procedures—rather than affirmative opt-ins—can create valid consent to third-party releases in Chapter 11 plans. In Epstein v. The Container Store Group, Inc. et al., Civil Action No. H-25-618, Bankr. No. 24-90627, District Judge Lee H. Rosenthal largely upheld the bankruptcy court's confirmation of a prepackaged plan containing broad nondebtor releases, holding... By: Adams & Reese