SACKLER Act

The SACKLER Act (S 2831) prohibits bankruptcy courts from releasing or enjoining claims against non-debtors - such as states, municipalities, tribes, or the federal government - in bankruptcy cases, except for specific situations under existing law. It directly affects government entities seeking to hold non-bankrupt companies (like opioid manufacturers) liable for claims arising before bankruptcy proceedings began. The bill bans courts from releasing these claims during bankruptcy, though it allows a temporary 90-day stay to pause lawsuits against non-debtors while states decide whether to pursue them. This changes bankruptcy procedure by preventing debtors from using bankruptcy to shield non-debtor entities from liability claims.