Like many other states, California is in the midst of a financial crisis often referred to as "the next Greece." California’s fiscal crisis has heightened fears that its other cities or municipal agencies will follow the City of Vallejo into federal bankruptcy protection under Chapter 9 ("Chapter 9") of Title 11 of the United States Code (the "Bankruptcy Code").

In an 81-page opinion, the Rhode Island Supreme Court overturned a verdict that would have required paint manufacturers to pay an estimated $2.4 billion to clean up lead paint from contaminated homes under a public nuisance theory.