July 23, 2021

Wall Street Journal: Elizabeth Warren Targets Sacklers’ Legal Protection in Purdue Bankruptcy

Sen. Elizabeth Warren is bolstering efforts by Democratic lawmakers to stop the owners of OxyContin maker Purdue Pharma LP from using the company’s bankruptcy to shield themselves from lawsuits blaming them for the opioid crisis.

The Massachusetts Democrat is sponsoring a Senate bill set to be introduced next week that calls for prohibiting owners of bankrupt businesses or other individuals who haven’t filed personal bankruptcy from getting so-called nonconsensual third-party releases protecting them from litigation by government entities and private citizens. A companion bill in the House is also slated to be introduced next week.

The type of legal protection the Sacklers seek has traditionally been available only to those filing for bankruptcy, Ms. Warren said.

“If the Sacklers want to stop those lawsuits, they can file for bankruptcy just like normal people do when they’re overwhelmed by debts,” Ms. Warren said. “There is not one set of laws for everybody in this country and a special exception for rich people. The Sacklers are trying to get something special for themselves and I want to cut them off at the pass.”


Read the full story here.

By:  Jonathan Randles
Source: Wall Street Journal