Some changes in the law are better late than never.
In 1978, Congress passed the Bankruptcy Reform Act, which created Chapter 11 of the U.S. Bankruptcy Code. In short, Chapter 11 of the Federal Bankruptcy Code system was designed for those honest businesses who fell on hard times. It gave them a new day. The law allows a company to continue its day-to-day operations through the reorganization process and ultimately protects the business from the weight of its creditors.
In the past four decades, class action defendants, and their lawyers, have reaped the most benefits. The protections Congress intended have been morphed into the greatest legal shield for bad actors and negligent institutions. They have worn a clear path in their repeated sprint to the U.S. Bankruptcy Court. Most notably, they include: Purdue Pharma, Boy Scouts of America, USA Gymnastics, and the Catholic Church.