Millenium Lab Holdings—Ruling on Third Party Releases Highlights Continuing Constitutional Questions Regarding Power of Bankruptcy Courts

Law360 published special counsel Ben Feder’s Bankruptcy Law Insights blog post, ​“Millenium Lab Holdings – Ruling on Third Party Releases Highlights Continuing Constitutional Questions Regarding Power of Bankruptcy Courts.” The article discusses the Millenium Lab Holdings case where Delaware District Court Judge Leonard Stark, on an appeal from a bankruptcy court order confirming a plan of reorganization, upheld a challenge to the bankruptcy court’s constitutional authority to release claims against non-debtor third parties under the plan. Judge Stark’s opinion demonstrated the extent to which the constitutional questions raised by the Supreme Court in Stern v. Marshall continue to cast a shadow over the adjudication of bankruptcy cases. The blog post goes on to further explore the Stern case and how Judge Stark’s opinion in the Millenium Lab Holdings highlights the ongoing uncertainty created by this case.

To read the full blog post, please click here.