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SENATE 2831118th CongressRead twice and referred to the Committee on the Judiciary.

SACKLER Act

Last Action
9/18/2023

Actions

  • 2023-09-18Read twice and referred to the Committee on the Judiciary.
  • 2023-09-18Introduced in Senate

CRS Summary

As of 2023-09-18 (00)

Stop shielding Assets from Corporate Known Liability by Eliminating non-debtor Releases Act or the SACKLER Act

This bill prohibits a bankruptcy court from releasing claims against non-debtors brought by states, tribes, municipalities, or the federal government. However, the bankruptcy court may issue a stay not exceeding 90 days regarding such a claim.

Complex bankruptcies may involve creditor claims against non-debtors associated with the debtor, such as the debtor's officers, directors, or employees. Currently, in carrying out a bankruptcy plan, certain courts may release non-debtors from liability (there is a circuit split regarding this practice).  

Cosponsors (2)

  • Elizabeth Warren (D-MA)
  • Peter Welch (D-VT)
Read on Congress.gov

Sourced from Congress.gov (public domain).

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.