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118-s-2831Committee
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SACKLER Act

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Summary

Official CRS 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).

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Bill details

Congress
118
Bill type
s
Introduced
September 18, 2023
Sponsor
Not yet available
Last action
September 18, 2023— Read twice and referred to the Committee on the Judiciary.

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