Senators Look To Close Bankruptcy Loophole
WASHINGTON, D.C.] – U.S. Senators Richard Blumenthal (D-CT) and Elizabeth Warren (D-MA) introduced the Stop Shielding Assets from Corporate Known Liability by Eliminating Non-Debtor Releases (SACKLER) Act, which would close a loophole in current law that allows individuals who have engaged in wrongdoing to evade accountability through bankruptcy proceedings. The SACKLER Act would restrict the use of a loophole in bankruptcy law that currently allows individuals who have not filed for bankruptcy to nonetheless be released from lawsuits brought by states, Tribes, municipalities, or the U.S. government. While far from bankrupt and worth nearly $11 billion, the Sackler family – owners of Purdue Pharma – is exploiting this loophole in the company’s bankruptcy proceedings to seek a lifetime legal shield…