U.S. Reps. Carolyn Maloney, D-N.Y., and Mark DeSaulnier, D-Calif., introduced legislation March 19 aimed toward stopping the Sackler household, which owns Purdue Pharma, from evading opioid lawsuits by way of chapter proceedings.
They launched the Cease Shielding Property from Company Recognized Legal responsibility by Eliminating Non-Debtor Releases Act, or SACKLER Act, to eradicate a loophole in chapter regulation by stopping those that haven’t filed for chapter, just like the Sackler household, from acquiring releases from lawsuits introduced by native, state and federal governments in chapter.
The invoice was assigned to the Home Oversight and Reform Committee, however no committee listening to date has been scheduled.
In 2019, Purdue Pharma filed for bankruptcy as a part of a deal to settle litigation over its function within the opioid epidemic.
Members of the Sackler household have been individually named in quite a few lawsuits, however none of them filed private chapter. Nevertheless, they requested the chapter court docket to supply them with the identical protections supplied to Purdue Pharma. All lawsuits in opposition to particular person Sackler relations froze in consequence.
On March 16, the drugmaker unveiled a plan that may permit it to exit chapter and switch its belongings to an organization devoted to preventing the opioid epidemic.
Extra articles on opioids:
Individuals who sued Purdue Pharma could get up to $48K in bankruptcy deal
Michigan pharmacist, pharmacy technician charged in $1.2M opioid scheme
Purdue Pharma bankruptcy restructuring requires Sacklers to cede company control
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