“BREAKING: Judge Dorsey to Grant Third-Party Releases in FTX Case, Plan Confirmation Imminent

The Court stated at today’s confirmation hearing that it favors granting third-party releases, overruling the U.S. Trustee’s (UST) objections that they were not consensual.

Judge Dorsey highlighted the following key points in overruling the UST objection:

Consent Uncertainty: The Purdue decision left open the question of what constitutes consent, and Judge Dorsey clarified that disclosures through opt-out mechanisms are permissible based on the facts of the case.

Satisfied with Process: Judge Dorsey has no problem with the opt-out process, which provided adequate notice (both individual and published) and was similar to class action standards.

Equal Treatment: All clients and plaintiffs were given an equal opportunity to opt out.

Objection Overruled: UST's objection to the release process has been overruled. » $FTT $LQTY