H.R. 2096 · 117th Congress
SACKLER Act
- Stage
- In committee
- Sponsor
- Carolyn Maloney
- Introduced
- 2021-03-19
- Latest action
- 2021-10-19 · Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.
Summary
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).