Dec 14 (Reuters) - The second year of the COVID-19 pandemic didn’t bring as many corporate Chapter 11 bankruptcies as the first year, but that didn’t mean things were quiet in bankruptcy courts. Here are five cases that made big waves in 2021 with their unusual legal strategies, high-profile players, and overall unpredictability.

Purdue Pharma

The Purdue bankruptcy, which began in 2019, served as a reminder that the U.S. was battling more than one major public health crisis. In September, Purdue, which filed for bankruptcy to resolve thousands of lawsuits accusing it of fueling the opioid epidemic through deceptive marketing of OxyContin, secured approval of a plan to steer funding towards opioid abatement programs. The plan came with a deal that provided legal protection for the Sackler family members who own the drugmaker against future opioid-related litigation in exchange for a $4.5 billion contribution to the settlement. But at the tail-end of 2021, a U.S. judge stunned everyone involved by effectively tossing the Sackler deal. She decided on appeal that the bankruptcy court did not have the authority to grant that protection to the Sacklers, who did not file for bankruptcy themselves and have denied wrongdoing. Purdue, which pleaded guilty in 2020 to criminal charges related to its marketing of its opioids, says it will appeal her ruling, meaning this case is far from finished.

National Rifle Association

Some would argue that the NRA was its own worst enemy when it declared in a press release announcing its Chapter 11 case that it was in its “strongest financial condition in years,” setting the stage for its critics to accuse it of misusing the bankruptcy system. Despite its insistence that its stated reason for filing for bankruptcy – to relocate from New York to Texas to avoid what it called a corrupt political and judicial environment – was legitimate, a Dallas judge dismissed the case about four months after it was filed. U.S. Bankruptcy Judge Harlin Hale concluded in May that the NRA had not filed its case in good faith, but rather as a tool to gain an advantage in a lawsuit brought by New York Attorney General Letitia James accusing the organization of rampant financial misconduct, which the NRA denies.

Hertz

The rental car company did the unthinkable this year, turning around its $19 billion bankruptcy into a certifiable win for shareholders. Hertz exited Chapter 11 over the summer with a $4.2 billion contribution from Knighthead Capital Management and Certares Opportunities LLC while shareholders walked away with $1 billion in value. Hertz’s surprise success was one for the books, with the judge overseeing the case saying it “surpasses any other result” she’s seen in 20 years as a bankruptcy judge.

Boy Scouts of America

Despite making progress toward a deal to settle decades worth of sex abuse claims from former scouts, BSA’s bankruptcy proceedings were chaotic in 2021. Insurers questioned the validity of certain abuse claims. Attorneys for separate factions of survivors clashed. Allegations of problems with the system for survivors to vote on the deal persisted. An attorney's letter opposing BSA's proposed settlement was sent to thousands of survivors who weren’t supposed to receive it, causing more confusion among some who were already unsure about the deal. And throughout it all, many survivors have maintained that the proposed payouts are insultingly low. The organization is now waiting to see whether survivors will vote to accept the plan. Meanwhile, BSA's lawyers have warned that the longer this case lasts, the more money will be drained from the organization itself.

Mallinckrodt

This pharmaceutical company grabs fewer headlines than Purdue, but its case still served up a fair amount of drama in 2021. After months of back-and-forth with people who say the company deceptively marketed its opioids, Mallinckrodt landed a deal that "addresses litigation claims, reduces debt and positions the company for the long term" over the summer to set up a $1.7 billion trust for them. But the company still wasn't out of the woods. In a plan confirmation hearing that lasted several weeks, the company's main hurdle was no longer opioid claimants. It was allegations, which the company denies, of price-gouging with respect to its Acthar gel product, which is used for infantile spasms and multiple sclerosis. Now, closing arguments are on the horizon and then everyone will have to sit tight for a ruling on the plan.

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