Director and Officer Releases: Decision Underlines Importance of Detailed Language to Avoid Liability

Overview


Darren Azman and Michael Galen wrote this bylined article on a recent Fifth Circuit case concerning reorganization plans which release claims against officers and directors that arose prior to or during the related bankruptcy case. Such releases are common and enforceable, the authors wrote, but the Fifth Circuit ruling “serves as a helpful reminder that poorly drafted releases may expose officers and directors to future litigation.”

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