Schulte Roth & Zabel partner Chris Avellaneda shared his thoughts on the recent SEC and CFTC “Reg Flex” agendas with Hedge Fund Law Report  for the article, “What’s Next for the SEC and CFTC? A Look at the Latest Reg Flex Agendas.”

Chris stated that the SEC items most immediately relevant to private fund advisers are the planned final rules for outsourcing; disclosure on environmental, social and governance (ESG) practices; and cybersecurity risk management and reporting.

Regarding the proposed amendments to Regulation D and Form D, Chris noted that advisers should be on the alert for these proposed updates since many private fund managers rely on the exemption from registration in Section 3(c)(7) of the Investment Company Act of 1940. Such advisers are less affected by changes to the accredited investor definition. However, “changes to disclosure requirements on Form D could still be impactful, and many firms still use the [Section 3(c)(1) exemption] for certain funds,” he said.

Read the article, “What’s Next for the SEC and CFTC? A Look at the Latest Reg Flex Agendas.”

In their article for the Journal of Bankruptcy Law titled “US Supreme Court Rules on Purdue Pharma Chapter 11 Plan: No Authorization for Release of Nonconsensual Claims Against Third Parties,”  Schulte Roth and Zabel partner Doug Mintz and associate Reuben Dizengoff examine a significant bankruptcy ruling by the US Supreme Court. 

In a highly anticipated ruling, the US Supreme Court has ruled that the Bankruptcy Code does not authorize the release of claims against non-debtors without the consent of affected claimants in a ruling springing from the Purdue Pharma bankruptcy.

In the 5-4 decision in Harrington v. Purdue Pharma L.P., penned by Justice Gorsuch, the Supreme Court rejected confirmation of the Purdue Chapter 11 plan and remanded the matter back to Judge Sean Lane and the bankruptcy court for further proceedings consistent with the Court’s opinion.

This is likely the most significant bankruptcy ruling by the Supreme Court since at least 2011 – one that will impact the negotiation and confirmation of bankruptcy plans – particularly, but not exclusively, in cases involving mass tort claims.