The SACKLER Act changes how bankruptcy courts handle lawsuits against people and companies connected to a bankrupt business. Right now, when a major company files for bankruptcy, courts sometimes let wealthy owners, executives, or related companies off the hook for any wrongdoing—meaning they don't have to pay damages or face legal consequences. This bill stops that practice. If a state, local government, Native American tribe, or the federal government has a lawsuit against these connected parties, the bankruptcy court can no longer wipe away those claims as part of the bankruptcy settlement. The only exception is that courts can pause these lawsuits for up to 90 days while the bankruptcy is being sorted out. Essentially, this means that if executives or related companies did something wrong—whether it's fraud, environmental damage, or other harm—they can't use someone else's bankruptcy as a shield to escape accountability. The bill is named after the Sackler family, who owned Purdue Pharma and faced numerous lawsuits related to the opioid crisis; this legislation would prevent similar situations where wealthy individuals connected to a company could avoid legal responsibility when that company goes bankrupt.

SACKLER Act

Blumenthal, Richard

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). &nbsp;