SACKLER Act

The SACKLER Act would prevent individuals who have not personally filed for bankruptcy from using a company’s bankruptcy proceedings to shield themselves from legal claims brought by government entities. Specifically, it prohibits bankruptcy courts from granting "non-debtor releases," which are legal maneuvers that can permanently block states, tribes, and the federal government from suing corporate executives or owners for their roles in a company’s misconduct.

For citizens, this bill ensures that government authorities can continue to pursue civil lawsuits and financial penalties against high-ranking individuals even if the corporation they lead declares bankruptcy. While the bill allows a court to temporarily pause these lawsuits for up to 90 days during a reorganization, it prevents those individuals from obtaining a permanent "legal shield" against government accountability.