Purdue Opioids-related insurance claims stayed in Bankruptcy Court pending arbitration

Avrio Health L.P. et al v. AIG Specialty Insurance Company, et al., 21-07005-rdd

The judge presiding in the Purdue Pharma LP bankruptcy case has granted the motion of several foreign-based insurers to stay insurance coverage proceedings against them in an Adversary Proceeding in favor of arbitration under their respective Bermuda form policies.

U.S. Bankruptcy Judge Robert Drain found that the insurance coverage claims could be pursued in arbitration, as the policies provided, without disrupting the ongoing process of confirming Purdue's bankruptcy reorganization plan. Purdue seeks $3.3 billion in insurance proceeds in the Adversary Proceeding. The Judge determined that, "[T]he key point is that here, while very important, the proceeds at issue of the insurance ... would not constitute even the primary asset of the Debtors' estate, but more importantly, again, this dispute is not determinative or dispositive of the plan confirmation process, either the negotiation of the plan or confirmation of the plan itself."

More information about the proceedings is available at

AGF&J's Michael E. Gorelick and Thomas R. Maeglin represented one of the moving insurers.


Michael E. Gorelick
Thomas R. Maeglin

Practice Areas

Insurance Coverage