Restructuring Mass Damages Claims: The WHOA And Other Collective Action Frameworks

In previous articles, we looked at several key aspects of the Dutch restructuring scheme (known as the "WHOA"), including: how the scheme operates; the ban on appealing lower court decisions; combining WHOA and US plans; and how the scheme works in practice. In other jurisdictions, insolvency proceedings similar to the WHOA are increasingly used to settle mass damages claims. A recent noteworthy example concerns Purdue Pharma, which initiated Chapter 11 proceedings to restructure its debts, consisting for a large part of mass damages claims arising from its role in the opioid crises. The WHOA may also have this potential to be used as an instrument to settle mass damages claims.